The NZCTU Te Kauae Kaimahi is calling on the Government to act in response to new data released by Stats NZ today which shows unemployment has reached a nine year high.
โThe labour market took another turn for the worse today, with unemployment growing, underemployment growing, fewer hours being worked, and wages are not keeping up with inflation. This data is another sign that the Governmentโs economic plan is not working,โ said NZCTU Economist Craig Renney.
โUnemployment is particularly acute for young people โ with 15,500 more 15โ24-year-olds unemployed than at the election.
โMฤori unemployment is 10.5%, and Pasifika unemployment is 12.1%. A record 406,000 people are underutilised โ meaning that they want more work, or access to work, but canโt get it.
โWages increased at their lowest rate for 5 years, with the Labour Cost Index showing wage inflation of 2.1% โ well below actual consumer price inflation of 3%. 44% of workers saw no pay increase at all this year and 68% saw a pay increase below inflation. Both public and private sector wages are growing at less than inflation.
โUnemployment in New Zealand is now well above the OECD average (4.9%) and comparable countries. 39,000 fewer people are in full-time work. 160,000 people are unemployed โ the highest number since March 1994,โ said Renney.
โThis data should be a wake-up call. Youth unemployment is soaring at the same time the Government is removing benefits from 18- & 19-year-olds. Our future will be bleak if we fail to support young people into good work,โ said NZCTU President Sandra Grey.
โWages are falling behind the cost of living, and yet the Governmentโs response is to ask our essential workers including doctors, nurses, teachers, and fire fighters to take an effective pay cut.
โThe Government is dangerously out of touch with the reality in the labour market right now. It promised to get the economy back on track and tackle the cost of living. On both of those measures itโs failing.
โWorkers and their families are doing it tough. Poverty and homelessness are rising. Many workers are taking up multiple jobs just to make ends meet. We need a new approach,โ said Grey.