Council of Trade Unions media release
3 February 2011

Unemployment still far too high

The rate of unemployment appears to be stuck at a high level and more needs to be done to create jobs and assist the unemployed.

The unemployment rate of 6.8 percent published today shows that the Government has dropped the ball on the jobs issue, said the CTU.

CTU Secretary Peter Conway said: “The Government cannot simply sit back and rely on the Rugby World Cup and rebuilding due to the Christchurch earthquake to boost jobs.”

With around 158,000 officially unemployed there has been no real improvement for over a year. The unemployment rate has gone up even with a significant drop in labour market participation. Male unemployed has jumped by 10,000 this quarter. The numbers seeking additional hours is 103,900. The rate of unemployment for those aged 15-19 years is over 25 percent. Unemployment of Māori is at 15.5 percent and Pacific peoples at 13.5 percent. Unemployment in some regions is very high such as Northland at 8.9 percent, Auckland at 7.8 percent and Bay of Plenty at 7.3 percent.

In the past these concentrated areas of disadvantage have only been turned around by a sustained programme of economic development and employment programmes.

“When the Government convened the jobs summit two years ago unemployment was at 5.1 percent, but now it is even higher yet the Government has lost interest and is focused on debt.”

“Much more could still be made of interventions such as Task Force Green, Community Max and Job Opportunities, as well as a renewed focus on training initiatives to equip the unemployed for any upturn.”

“The Government scaled these types of initiatives back far too soon in the context of the jobs impact of the recession.”

Peter Conway said that in addition the Reserve Bank must also consider cutting the Official Cash Rate again to provide investment stimulus.

ENDS

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