Unemployment at record low

The Government’s record of employment and unemployment continues to be very strong, even excellent.  One can quibble over how much is due to Government policy or not, but nevertheless it has happened on their watch, and is a good achievement.

The December 2007 Household Labour Force Survey had 77,000 unemployed, which is just 3.4% of the labour force – a record low. It has been under 4% for over two years. The challenge in 2008 will be to keep it low in the face of a more uncertain economic environment.

The OECD average unemployment rate is 5.5%.  NZ is 5th lowest at 3.4%.Norway is 2.6%, Netherlands 2.9%.

There is also a measure known as jobless, which is different to unemployed.  To be counted as unemployed you need to be both out of work, available for work, and seeking work. On top of that there are 50,000 people not seeking work and 23,000 unavailable for work. That is a total jobless of 146,000, which is much the same as two years ago.  But unemployment is the more important figure as these are people really wanting to work and trying to work, but unable to find it.  There are different issues around those not seeking work.
The labour force participation rate has also risen to 68.8%.  This is also welcome, and one of the factors to sustainably lifting national earnings.

There is still some work to do with under 20 year olds – their unemployment rate has reduced, but is still 12.6%.

Bu ethnicity the unemployment rates are European 2.3%, Maori 7.3%, and Pacific 4.7%. All also well done on historic levels.  Still a concern Maori unemployment is three times European – but nevertheless this is a historically low level.