Unemployment hits 13-year low

By Phil Boeyen, ShareChat Business News Editor

Thursday 10th May 2001

New Zealand's unemployment rate has fallen to its lowest level since June 1988.

For the March quarter unemployment stood at 5.4% compared with 5.6% in December. In 1988 the level was 5.2%.

The latest figure is less than half the peak ten years ago when it reached a high of 10.9%.

Statistics New Zealand says seasonally adjusted figures show the level of employment remained stable in the recent quarter, maintaining the growth seen last year.

"Unemployment levels have continued to decline, down 3,000 in the latest quarter. However those not in the labour force increased by 8,000 and consequently the labour force participation rate decreased by 0.2 percentage points," a statement says.

Since March last year unemployment has dropped by 16,000 or 13.3% with the level of full-time employment up 43,000.

The latest figures show both the short and long-term unemployed figures have fallen.

Southland at 2.8% has the lowest unemployment rate according to the March figures while the Bay of Plenty has the highest at 8.5%.

The Council of Trade Unions has welcomed the improved figures but notes that because the participation rate also fell the drop in the rate is not as significant as earlier improvements.

It also warns that the fall in unemployment, combined with recent wage rises, should not be taken as signs that that the economy overheating and says it strongly supports a further Reserve Bank rate cut next week.

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