Unemployment down - especially for youth

Posted by Andrew on February 7, 2014

Latest labour market data confirms further growth in job numbers and a decline in the unemployment rate from 6.2 to 6 per cent.

The latest Household Labour Force Survey (HLFS) shows employment was up by 1.1 per cent – 24,000 people – in the December quarter and up 3 per cent (or 66,000) in the last year. This was the strongest annual rise since December 2006.

The survey shows:

• The labour force participation rate increased 0.3 per cent to 68.9 per cent – the second highest since records began in 1986. 
• Female participation rose 0.4 per cent to 63.4 per cent – the highest level since the HLFS began.
• The rate for youth not in employment, education or training (NEET) for 15-24 year olds fell 0.1 per cent to 11.3 per cent – the lowest rate since December 2008.
• Māori and Pasifika unemployment are both down. Māori unemployment rate was 12.8 per cent (from 14.8 per cent a year ago). Pasifika unemployment rate was 13.7 per cent (from 16.0 per cent a year ago).
• Manufacturing jobs are up 6 per cent in the last year or 14,300 people.

New Zealand has a significantly higher employment rate than Australia because of our higher participation rate. 

Wages continue to rise faster than inflation. Average weekly earnings rose 2.8 per cent in the last year, compared to inflation of 1.6 per cent.