5.3% Unemployment with AI bubble about to pop

The NZCTU are damning of the new Unemployment stats…

No surprise unemployment at nine year high

“The 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 Government’s economic plan is not working,” said NZCTU Economist Craig Renney.

“Unemployment is particularly acute for young people – with 15,500 more 15–24-year-olds unemployed than at the election.

“Māori unemployment is 10.5%, and Pasifika unemployment is 12.1%. A record 406,000 people are underutilised – meaning that they want more work, or access to work, but can’t get it.

“Wages increased at their lowest rate for 5 years, with the Labour Cost Index showing wage inflation of 2.1% – 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.

“Unemployment 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 – the highest number since March 1994,” said Renney.

…Bernard Hickey makes the point of generational damage…

The small rise disguises an emerging jobs and health catastrophe for young people who have entered the workforce in the last decade since the start of mass usage of smart phones, the Covid pandemic and heavy job losses since late 2023. Stuff’s Bridie Witton reports from official data this morning that almost 90,000 people are now on a jobseeker or supported living benefits because of mental health issues, up by 35,000 over the last decade, including 9,000 during the 2020 and 2021 Covid lockdown periods, and a total of 23,000 since March 2020. The damage to a generation’s health and work prospects for life has been compounded by a collapse in employment of young people since early-2023, including the loss of over 80,000 jobs in the 15 to 35 age groups.

…let’s not pretend that this is the legacy of Labour’s Covid debt either…

• Key left NZ with $60 billion debt!
• Labour borrowed $80 billion!
• This Government will borrow $120 billion with an austerity budget that hollows out public services while giving landlords tax loop holes, the richest tax cuts, hundreds of millions to gas and oil, Big Tobacco and Real Estate Pimps!

…this is being directly caused by this Government’s own policies and their distress decision last year to destroy the construction pipeline.

Meanwhile Chris Bishop sells 171 State Houses to private developers…

In housing news, Kāinga Ora has sold 171 sections in South Auckland to a developer for a profit, David Fisher reports for The NZ Herald-$, while the Government is waiting for house prices to rise to sell 35 built-but-unoccupied townhouses it had to buy off a Kapiti developer because of an underwrite from 2023, Amy Ridout reports for Stuff.

…the economic vandalism this right wing Government has caused with their Crony Capitalism that strangles the common good for their donors interests is a disgrace, yet Kiwis are still in denial over their hatred towards Jacinda to aknonwdge they didn’t read the fine print of a National/ACT/NZF Government.

This Government cares about their donor mates, they don’t give a shit about you.

That’s why 200 Kiwis a day are fleeing this country.

Meanwhile the AI bubble looks ready to pop…

Trader who inspired The Big Short bets against AI as tech shares fall

…Luxon’s thumbs up vacant aspiration looks more hollow by the passing day.

 

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