Bay's unemployed rate falls

Nationally, unemployment is at its lowest rate since March 2009, having fallen 0.8 to 5.6 per cent year-on-year. Photo / Ben Fraser

Bay of Plenty unemployment has dropped again as national joblessness hits its lowest point in five years.

Statistics New Zealand's household labour force survey shows the Bay's jobless rate, including Rotorua, fell to 5.6 per cent in the three months to June, down from 7.1 per cent in the previous quarter.

Employment in the region dipped 1 per cent from the previous quarter to 60.7 per cent, but was up 0.4 per cent compared with a year ago.

The employment rate represents the percentage of people employed in the working-age population.

Meanwhile, Ministry of Social Development figures show 7,134 Rotorua residents claimed benefits in the three months to June 30 — down 44 from the previous quarter and 55 fewer than the same quarter last year.

Nationally, unemployment is at its lowest rate since March 2009, having fallen 0.8 to 5.6 per cent year-on-year.

The employment rate dipped 0.1 per cent to 65 per cent in the three months to June, but rose 1.3 per cent compared with a year ago.

Despite the quarterly decrease, the national number of people in employment still increased by 10,000 in the three months and jumped 82,000 to 2.33 million people in the year to June.

Statistics New Zealand labour market and households statistics manager Diane Ramsay said more people were moving into employment.

And although the participation rate has dropped from a peak last quarter, it was still at an "historically high level".

The Quarterly Employment Survey, released at the same time, showed jobs in construction, public administration and safety, and education and training had all jumped from the March quarter, partly offsetting a drop in agriculture, forestry and fishing jobs and a decline in retail trade and accommodation services.

Demand for workers from established businesses rose 2.3 per cent, while annual wage inflation increased 1.7 per cent compared with a 1.6 per cent rise in price inflation.

"Annual wage inflation edged up and this was driven by private sector annual wage rate growth of 1.8 per cent — influenced by the minimum wage increasing 3.6 per cent," Ms Ramsay said.

Nationally, the number of people on benefits dropped by more than 16,000 in the year to June, with figures for the quarter at their lowest level since 2008.