Unemployment in New Zealand has climbed to 5.2%, with 158,000 people now out of work, according to new data released by Stats New Zealand.
The figures have sparked concern from the New Zealand Council of Trade Unions (NZCTU), which says the Government lacks a plan to support jobseekers or address wage stagnation.
“Unemployment has increased 28% since the Government took office,” said NZCTU Economist Craig Renney. “They have no plan to bring the numbers down or help unemployed workers, and the data shows even deeper problems ahead.”
Renney pointed to a steep decline in work hours, with 2.5 million fewer hours worked compared to this time last year and 8.5 million fewer hours since the last election – equivalent to over a million fewer workdays based on an eight-hour day.
Wages are also failing to keep up with rising costs, according to Renney. Over half of workers (51%) received a pay rise below the rate of inflation, and 64% got less than a 3% increase. The Labour Cost Index showed 43% of workers saw no pay rise at all, and average weekly earnings in the public sector dropped 0.3% – the sharpest fall since 2018.
Underemployment remains a major concern, with 130,000 people wanting more hours but unable to get them. The broader measure of labour underutilisation – including those seeking work or more hours – reached a record 400,000 people.
The situation is particularly grim for young people, with 15,000 fewer 15–24-year-olds in employment than a year ago. Māori and Pacific Peoples continue to face high unemployment rates at 10% and 12.1% respectively. Employment also declined in nine out of 12 regions, including a loss of 23,100 jobs in Auckland alone.
Renney warned the weak labour market, combined with expected poor GDP figures, suggests the economy is faltering and needs support rather than austerity. He noted that New Zealand’s unemployment rate is now higher than that of the UK (4.5%), USA (4.2%), Australia (4.2%), and the OECD average (4.9%).
“This data shows that New Zealand needs a different economic plan,” said Renney. “Workers are paying the price for the Government’s policies, who have the wrong priorities when tax breaks come before employment support. Wages and work aren’t back on track, and working people aren’t getting ahead.”
Image credit: Umit Yildirim
Over taxation, including local government rates, plus people paying “twice” for things they have already paid for in taxes, such as healthcare and tertiary education, plus under regulation of essential industries such as insurance and banking, is a BIG core part o the problem. Robbing people of a disposable income means they spend less, generating less work and opportunity. It also stifles the creation of new businesses.
We need sensible taxation, a lot less waste in central and local government, money spent where its actually needed and oligopolies either regulated or broken up. We also need to ensure foreign companies pay their share of taxes and don’t get to siphon money, off shore.
Yes. 10% flat tax. No GST. No capital gains tax. Most of the taxes are wasted.
A crisis the unions help create