RBNZ data highlights weak economy and labour market – NZCTU
“Unemployment is forecast to remain elevated until the end of 2025 and isn’t expected to fall back to its pre-recession lows within the forecast period. Without a plan to reduce it, we are choosing a permanently higher unemployment rate in New Zealand. It’s no wonder so many Kiwis are emigrating overseas,” said NZCTU Te Kauae Kaimahi Economist Craig Renney.
Today’s announcement by the Reserve Bank shows that the economy will remain weak going into 2025, and that unemployment will continue to climb, said Renney. “The forecasts show that employment is likely to remain below 2023 levels until December 2025 – while the labour force grows by 28,000 during that period. Over the past year economic growth was effectively zero.”
“Business investment won’t hit 2023 levels until 2027. Residential investment is still falling. Government spending falls and returns to its current level in 2026. There is no engine of economic growth except private spending, which is weak.”
“Many people will celebrate the fall in interest rates, and the hope that this will bring financial relief. But this data also shows that the labour market is in for the long-haul. Yet there is no plan to help towns like Tokoroa or Timaru deal with the closure of large employers. It’s time for a different track.” Renny said.
The dreamers among us still think Nats are great at managing the economy .When the reality is they are doing a poor job .How can the economy grow as they expect when it has been shut down .?How is making another 100k unemployed good for the economy ? As the retailers have found it is not because they are the customers who used to spend in the shops and no longer do .The government will be finding out soon how much those people contribute to their income as well as less income coming to government from the business world .
Then there is the wasted money that this government has squandered to make them feel good ,like the sinking of the ferries and repeal of 3 waters ,which had money invested in the setup which was under way .Now councils are scrambling to jump on the 3 waters band wagon which means all that expense again .We will soon have the 10 3 water entities that labour was getting underway but now the cost is on the ratepayer .Blatant racisim is now sinking NZ faster than Willis sunk the ferries .I look foward to finding out how much more money we will be paying the ship builders for no boats .Then I look foward to finding out how much we are going to pay for short life cheap option sinkable ferries .Then she will quietly build the required warves under another name and claim they are not for the new ferries and may actually put the cost onto rate payers of Picton and wellington so Brown can have an orgasim and appoint managers to both councils because of a blow out in rates .
Lowering interest rates is what you do when the economy is down the toilet .