Hon Paula Bennett
Minister for Social Development and Employment

Minister of Youth Affairs

22 January 2010
Media Statement

Rise in Unemployment Benefit numbers for December

Latest figures show the number of people on the Unemployment Benefit rose by 13% last month.

66,328 people were receiving the Unemployment Benefit at the end of December 2009 up from 58,541 in November.

“The rise in benefit numbers was expected. At this time of year we see an influx of students leaving secondary school and tertiary education and competing for jobs. Many employers also tend to not hire over the Christmas period, shutting down for the break, which further tightens the labour market," says Ms Bennett.

The figures reflect a cyclical pattern seen in previous years. From November to December 2008, the increase in Unemployment Benefit figures was 28%. The same period in 2007 saw a 13% rise, in line with the latest figures for 2009.

"While the economic outlook is beginning to improve, the peak in unemployment has not yet been reached and we expect numbers to go up,'' Ms Bennett said.

"The Government has an unrelenting focus on supporting people into work. Results to date show we are doing just that. Despite the economic climate we are seeing increasing numbers of people coming off the unemployment benefit into work."

This time last year 1,772 people come off the benefit – last month that number more than doubled with 3,810 people getting off the benefit and into work.

Work and Income continues to post new vacancies on its books, has specialist staff matching people with jobs and is working hard to get people back into work.

ENDS

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