Key: Unemployment survey volatile

Photo / Brett Phibbs

The Household Labour Force Survey which recorded a sharp rise in unemployment to 6.8 per cent yesterday is "notoriously volatile", Prime Minister John Key says.

The Labour Party, the Greens and trade unions blamed the Government for the increase in unemployment which rose 19,000 during the June quarter to reach 159,000, an increase from 6 per cent to 6.8 per cent which was higher than economists had predicted.

Labour leader Phil Goff said the figures were a tragedy for those who had lost their jobs and the Government didn't have a plan to deal with the situation and further inaction would mean prolonged uncertainty over the jobs market.

Green Party co-leader Metiria Turei said the figures were a stark reminder that the Government's policies were taking New Zealand in the wrong direction, and the Council of Trade Unions (CTU) said there was a sense that the economy was stalling.

This morning Mr Key said the survey was notoriously volatile and moved around quite a lot.

However, the Government was working hard to get on top of unemployment, he said.

"It's the most critical thing that New Zealanders have jobs and that's a focus of the Government's attention."

While he was disappointed unemployment had risen there were also encouraging signs in the data, including participation rates in the workforce being up, Mr Key said.

Maori Party co-leader Pita Sharples said the figures were "shocking" and Maori were often the first to lose their jobs when the employment market went down.

The Labour Party said young people, ethnic communities and Asian people were also disadvantaged by the rise.

The number of 20-24-year-olds unemployed increased 2.6 per cent to 13.7 per cent since March, Labour MP Jacinda Ardern said.

Unemployment in the 15-19-year-old age group fell slightly.

Asian unemployment had reached 10 per cent and ethnic unemployment rose to 13.8 per cent.

Labour co-leader Annette King said Social Development Minister Paula Bennett was clearly not helping unemployed 20-24-year-olds.

"Paula Bennett needs to take her blinkers and earmuffs off and start listening and seeing what is happening around her."

Ms Bennett said unemployed people remained a focus for the Government.

"We always knew it would be a bumpy road to recovery post-recession and it is, but an overall picture is emerging of a very slow, steady recovery."

- NZPA