Economists’ statement on unemployment offensive

Bank economists’ statement on unemployment numbers offensive

Bank workers union Finsec says the BNZ economists who think that unemployment in 2008 was artificially low should spend some time with those looking for work to better understand the full impact of being jobless.

“Around the world historic numbers of people are out of work. They are not just numbers. They are people struggling to support themselves and their families. To rationalise their joblessness by saying previous unemployment figures were artificially low is offensive,” said Finsec Campaigns Director Andrew Campbell.

“The message behind the statement is that BNZ is comfortable with more people unemployed to help reduce wage and inflationary pressures. However the bank itself has not been prepared to shoulder the societal responsibility of looking after those out of a job,” said Campbell.

“The BNZ has directly benefited from significant company tax cuts and was recently forced to pay settlement in a tax avoidance case. The lower tax base they advocate makes it much harder to fund the welfare support for the increased numbers of unemployed they want,” said Campbell.

“BNZ is putting its money where its mouth is in adding to the unemployment figures. Between 2008 and 2009 BNZ reduced its own full time equivalent staffing numbers by 149,” said Campbell.

“The recent global financial crisis has taught us that we need much greater balance in our economy. BNZ and other bank economists should stop trading jobs against inflation. Higher employment will lead to higher consumption and growth and there is room for some increases in inflation which is currently very low,” said Campbell.

“Getting people back into work and the economy growing should be the number one thing bank economists are focused on,’ said Campbell.

ENDS

© Scoop Media