NZCTU Te Kauae Kaimahi Economist Craig Renney is saying that new data released by Statistics New Zealand shows that the labour market is even more bleak than feared, with the loss of more than 10,000 jobs in just three months.
“What we are seeing is an unemployment crisis in New Zealand, and this Government is failing to do anything about it. Working people are paying the price of their inaction,” said Renney.
“There are more than 50,000 fewer jobs than in December 2023, with widespread falls across a wide range of sectors, including construction (16,230 fewer jobs), manufacturing (8,707), retail (6,091), professional services (7,228), IT and telecommunications (3,527), and public administration (6103).
“Every region has seen job losses. Since December 2023 there have been 23,000 jobs lost in Auckland – 35 jobs lost every day. Nowhere in the country has escaped the pain of rising unemployment, even in areas where the local economy is stronger.
“The economy is particularly difficult for younger workers, with 19,842 fewer filled jobs for 15–24-year-olds than this time last year, and 41,000 fewer filled jobs than this time 2 years ago.
“Total gross earnings rose 1.5.% last year – well below current inflation of 2.7%. This supports data we have seen elsewhere that many workers are falling further behind the current cost of living. This has likely been compounded by real-terms cuts in the minimum wage, and fewer jobs being available.
“For the past 9 months, the number of jobs being lost was declining, but is now rising quickly again. Outside of a COVID-affected quarter, there was not a single quarter where filled jobs declined going back to June 2019. Now we have had more than a year of continued job losses across the country.
“The Government has no plan to manage this crisis and has resorted to sanctions and removing people from jobseeker support rather than tackling the issue.
“More job losses and business closures are being announced every day, and the Government does not seem to have any ability to recognise the growing scale of the challenge,” said Renney.