Jobless rate is big worry for North

Northland's high unemployment rate continues to pose major challenges for the region's economic development, according to a regional "scorecard".

The ASB/Main quarterly report, which ranks the economic performance of New Zealand's 16 regional council areas over the last quarter, shows employment declined by 2 per cent in Northland since the September 2011 quarter.

The report measures regional data on employment, construction, retail trade, house prices and wages.

Northland Chamber of Commerce council member Tim Robinson said long-term unemployment remained a major concern.

"It is about getting people into employment and, if not that, into training. I know NorthTec are doing work around what is really applicable training to increase the number of trades-based training up here."

Northland's construction sector grew 13 per cent in the 12 months to September 30. However, it was still below the national industry growth rate of 18 per cent.

Mr Robinson said oil and gas exploration along Northland's west coast would provide a significant boost for the local economy.

"That will be bringing people into the district for at least 18 months."

Retailers also had high hopes for the upcoming festive season, he said.

"There's more shopping time available before Christmas this year. We've got the weekend, which will allow some more trading time."

Retail trade was up 3 per cent year-on-year, according to the report.

Overall, Auckland remains the country's strongest economic region.

Increased retail sales and housing market activity reflected strong population growth in the Super City, contributing to its favourable quarterly results, the report said.

Nationally, employment demand slowed in all areas except Canterbury. There was a slight growth in wages, with skills shortages expected over the next year as the Christchurch rebuild gains momentum.

Retailers had a disappointing third quarter, felt most by those based outside the main centres. Gradual recovery in the construction industry continued, based primarily around increased demand for residential property.