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Home / Whanganui Chronicle

City benefits as NZ jobless figure hits five-year low

By Cassandra Mason
Whanganui Chronicle·
7 Aug, 2014 06:34 PM3 mins to read

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Unemployment in Wanganui and Manawatu has dropped again as national joblessness hits its lowest point in five years.

The just-released Statistics NZ household labour force survey shows the region's unemployment rate fell to 7 per cent in the three months to June, down from 7.7 per cent in the previous quarter and 8.9 in June last year.

Employment in the region rose slightly from 59.2 to 59.6 in the quarter but remained unchanged from the previous June.

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

The figures follow revelations fewer Wanganui residents are on welfare.

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The latest Ministry of Social Development figures show 5045 Wanganui residents claimed benefits in the three months to June 30 - 247 fewer than during 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 number of people in employment nationally still increased by 10,000 in the three months, and jumped 82,000 to 2.33 million people in the year to June.

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

Although the participation rate had dropped from a peak last quarter, it was still at a "historically high level".

"The unemployment rate fell from a revised 5.9 per cent to 5.6 per cent and is the lowest it has been since the March 2009 quarter."

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.

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