Unemployment Rises Above Projections
August 5, 2010 New Zealand Finance
The New Zealand Government will need to revise its economic growth projections after latest employment figures showed a significant increase in unemployment.
New Zealand’s unemployment rate rose to 6.8 percent during the June quarter, compared to a level of 6 percent in the prior quarter. The latest figure represents a 19 000 person increase in national unemployment, bringing the total to approximately 159 000. The statistics were released government’s Household Labour Force Survey, released on August 5th.
Last month Alan Bollard, Governor of the New Zealand Reserve Bank, predicted an unemployment rate figure of only 6 percent. National economists believe that the Governor’s recent decision to raise New Zealand’s Official Cash Rate (OCR) was based on the more optimistic prediction. Explaining the unexpected rise, Statistics New Zealand released a statement saying ,”This rise in unemployment follows an unseasonal drop recorded in the March 2010 quarter and indicates a period of volatility in the labour market.”
Opposition party leaders have already struck out at the National Party, claiming that the unemployment rate is a direct result of the Government’s poor economic policies. Phil Goff, Labour Party leader, said “Kiwis have had enough of gimmicks like the Jobs Summit and the cycleway – they want action from the government to get them back into work.”
Photo by The Labour Party