Fresh fears over Hawke's Bay jobless total

While the unemployment rate in Hawke's Bay/Gisborne has fallen, it is still "not at all satisfactory" due to a fall in the overall number of jobs, says Hawke's Bay Chamber of Commerce CEO Murray Douglas.

Figures released from the Household Labour Force Survey show the jobless rate fell 0.3 percentage points in the December 2011 quarter, down to 7 per cent compared with 6.3 per cent nationally. The number of people unemployed decreased by 400.

However, year on year, the number of employed fell from 102,000 in Hawke's Bay/Gisborne in December 2010 to 95,600 in December 2011.

"Even if we thought December 2010 was a bit of an aberration, the trend in the year to December 2011 and the two year period indicates that total employment along the East Coast is trending down, irrespective of the unemployment rate improving slightly in the last quarter," he said.

The employment rate also showed a lower participation rate than the national picture with 61.4 per cent employed compared to the national figure at 63.9 per cent.

"The flat employment rate highlights the need to grow jobs in the region, otherwise people will leave or go on benefits," Mr Douglas said.

The labour force participation rate also fell in the year to December suggesting that people are leaving the area, rather than retiring.

He said it was "vital" that the regional development agency due to be launched this month, Business Hawke's Bay, focused on growing jobs.

Mr Douglas was also CEO of Business Hawke's Bay.