Unemployment hits 11-year high — where are the Green Shoots of Recovery?

Official data is now doing what political rhetoric could not — exposing the gap between economic promises and lived reality.

Unemployment reaches 11-year high

Surprise, surprise, unemployment is now at highest in 11 years…

Unemployment rate rises again, to 5.4%: Highest since 2015

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The unemployment rate has risen again to 5.4%, with 165,000 without work, an increase of 5,000 on the previous quarter, official figures show.

The 5.4% unemployment rate for the December quarter followed a 5.3% figure for the previous September quarter, and 5.2% in the June quarter.

At 5.4%, Stats NZ’s Jason Attewell said it was the “highest since the September 2015 quarter, when it was 5.7%”.

Stuff

So much for the ‘Green Shoots’

…what makes these numbers worse is the widespread prediction amongst the pundit class that Unemployment had peaked at 5.3% and that unemployment rates would start dropping.

Turns out those green shoots of recovery are the dried snot of desperation.

Last year the Prime Minister promised us growth, growth, growth and the only things that grew were unemployment, inflation, people leaving NZ and the amount of meth we consume each year. I think voters will be feeling very cheated by the economy with many experiencing a grim Christmas and a harsh cost of living summer.

The decision by this Government in early 2024 to smash Labour’s Infrastructure Pipeline has seen 140,000 leave NZ in two years which has caused cascade failures throughout the economy.

Kiwis should feel angry at this Government’s ideological economic experiment.

Why the old playbook no longer works

Bernard Hickey makes the point that the previous state cutbacks to deal with the 1990, 1997, 2007 and 2020 recessions only worked because the level of private debt and business debt was so low, however it is far higher now meaning households and businesses can’t step in to pick up the cost of the cut backs.

There is a fundamental problem with the strategic thinking of this Government when it comes to the economy – User Pays doesn’t work if the users can’t pay!

You have unemployment lifting as the IRD crackdown lifts liquidations to a 16-year high.

Who is this economy working for?

Stats NZ’s Housing Living Costs published this week showed the poorest 20% of households, beneficiaries and pensioners experienced higher inflation in the last year than the richest 20%!

This economy is objectively helping the minority rich while punishing the majority poor.