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August 8 2010 - Unemployment rose from 6.0% to 6.8% - seasonally adjusted - during the June 2010 quarter, according to Statistics New Zealand. The result is that the drop in unemployment seen in the March 2010 quarter has been largely unwound, indicating a period of volatility in the job market.

The number of unemployed reached 159,000 in the June quarter - an increase of 19,000. Young males were most affected. Employment also fell by 6,000 during the June 2010 quarter, compared with a 21,000 increase in the previous quarter. However, there was a rise in full-time employment while part-time work fell. Usual and actual hours worked also rose during the quarter, an indication that people in work are working more hours.

Peter Gardiner, manager of labour market statistics, commented:

"There have been recent fluctuations in both employment and unemployment, which can occur during periods of major change in the labour market."

"These movements indicate that the labour market is still adjusting to the changing economic climate."

Looking at the underlying or trend unemployment rate, which excludes seasonal and unexpected changes, we can see that at 6.7%, trend unemployment has been virtually unchanged since September 2009.

Statistics New Zealand state that growth in the working-age population has out-stripped employment growth in the last year and that this, along with comparatively high and stable rate of labour force participation has kept unemployment up.

The results are based on the Household Labour Force Survey, a representative sample of 15,000 households throughout New Zealand.

Reaction

The disappointing figures have produced a chorus of negative comments. Peter Conway, New Zealand Council of Trade Unions (CTU) Secretary, said:

"There is a sense that the economy is stalling and confidence is evaporating. The Government is far too complacent about this. And jobs are at the heart of any economic recovery. The reality is that the jobless need more support."

He drew attention to Maori unemployment at 16.4% (up from 12.6% lasy year) and Pacific unemployment at 14.1% (compared with 12.8%) as well as a 70% increase in long-term unemployment to 37,600.

Labour Maori Affairs spokesperson Parekura Horomia said:

"26,400 Maori are now without jobs - that is an increase of 3600 since the previous quarter." And pointing to the situation in areas such as East Coast and the Far North, she said "In Gisborne-Hawke’s Bay, for example, the rate is up from 6.5% to 8.5%, an increase of 2100 people. That’s a huge amount, but you can be sure that even within that figure, the impact on Maori will be still higher.

"The National Government has no credible economic plan to create jobs and build a strong economy for New Zealand.

"The opposite is the case. We are moving from one pie in the sky idea to another, and Kiwis are increasingly becoming the victims."

Labour's spokesperson for Pacific Island Affairs, Luamanuvao Winnie Laban said:

"When the unemployment rate for Pacific people climbed above 14 percent, I said that this staggering figure should shame the Government into action. Well, it clearly hasn't done that.

"It seems that nothing will make this Government take action on unemployment, and the most vulnerable people are those suffering the most.

"The Government has no credible plan to lift the economy and create jobs. Their much vaunted 'Job Summit' last year has fallen flat and nothing has replaced it.

"Unemployment should be the Government's number one priority, and Pacific unemployment should be the number one priority for the Minister of Pacific Island Affairs.

"That minister has said nothing about unemployment for months. Her silence and her Government's inaction are shameful. The hardworking Pacific community who have always contributed to New Zealand's economic and social identity deserve better. They want jobs."