Unemployment Rate Rises to 3.9 Percent

Unemployment Rate Rises to 3.9 Percent

The seasonally adjusted Household Labour Force Survey (HLFS) results for the March 2005 quarter show a flattening of the recent strong growth in the labour market, Statistics New Zealand said today. The unemployment rate increased by 0.3 of a percentage point, to 3.9 percent, while the number of people employed rose only marginally (by 1,000) this quarter. Actual hours worked fell 1.8 percent from the high of the December 2004 quarter, while the labour force participation rate fell slightly to 67.6 percent.

The working-age population continued to grow this quarter (up 11,800), but growth is slowing on an annual basis. The quarterly increase exceeded the growth in the total labour force, leading to a slight fall in the labour force participation rate and an increase in the number of people not in the labour force. Although the overall participation rate fell, the female participation rate increased slightly to 60.8 percent and is now the highest on record.

The marginal growth in employment this quarter was outweighed by the growth in unemployment, leading to an increase in the unemployment rate for the first time since December 2003. The increase in unemployment this quarter was marked by an increase in male unemployment, while the slowdown in employment growth was a result of a fall in part-time employment following the strong growth of last quarter.

Despite the increase in the unemployment rate and the flat employment result, the labour market has remained historically strong in the March 2005 quarter, with the third-lowest unemployment rate recorded by the survey, a high rate of labour force participation, and the highest level of employment ever recorded.

Email: info@stats.govt.nz Unadjusted unemployment rates in the March 2005 quarter stood at 8.8 percent for Mäori, 7.9 percent for the 'Other' ethnic group, 6.7 percent for Pacific peoples, and 3.1 percent for the European/Päkehä ethnic group.

Brian Pink

Government Statistician

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