Despite economists participating in a Bloomberg News survey anticipating a modest decline in New Zealand’s jobless rate the figure actually leapt to the highest level seen since 1999.
In recent years the impact of serious earthquakes and the global economic slowdown has led to workers fleeing New Zealand and trying their luck in countries with more employment opportunities on offer, but there still aren’t enough jobs for those who remain.
According to a report released by Statistics New Zealand the jobless rate, which stood at 6.8 per cent in the second quarter of 2012, has swung up to 7.3 per cent – a thirteen year high. Employment dropped by 0.4 per cent (or 8000 jobs).
This is the first time in three years that employment has fallen over two consecutive quarters and although there was an increase of 7,000 jobs in part-time employment, full-time employment declined by 0.8 per cent, shedding 13,000 jobs in the third quarter.
The manufacturing sector was largely responsible for the decline, with an over two-year low in hiring.
Total hours worked in New Zealand (in every region but Canterbury) fell by 2.1 per cent from the same period of 2011.
An economist with Bank of New Zealand Ltd commented: ‘It’s just another reason to think economic activity was quite soft in the third quarter.’ Doug Steel continued: ‘We’re not convinced yet that the bank will ease but the chance has increased.’
The report also showed that the number of unemployed people rose to 175,000.
This is the latest in a string of statistics which hint at New Zealand’s struggle to achieve economic stability.
Following the data release the New Zealand Dollar posted declines against the majority of its counterparts.
As of 10:30 am
The Pound to Euro exchange rate is currently trading at 1.2520
The Pound to US Dollar exchange rate is currently trading at 1.5935
The Pound to Australian Dollar exchange rate is currently trading at 1.5314
The Euro to US Dollar exchange rate is currently trading at 1.2726
The Euro to Pound exchange rate is currently trading at 0.7986
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