Is NZ facing a jobs crisis?

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Is NZ facing a jobs crisis?

3News NZ

The Government denies there's a crisis, and says new jobs are being created in infrastructure, food processing, oil and gas (file)

The Government denies there's a crisis, and says new jobs are being created in infrastructure, food processing, oil and gas (file)

Transpacific waste management is the latest company to announce job cuts. It comes at the end of a week when at least 1000 more workers could be facing unemployment with Telecom restructuring and Solid Energy in financial trouble.

But are we facing a jobs crisis?

Transpacific has announced 200 jobs across Australia and New Zealand will go. It has the dubious honour of joining a downsizing club that in the last four weeks looks like this:

  • Telecom's restructure will see hundreds of jobs go.
  • Solid Energy's debts mount to $400 million. The axe now hangs over 1200 jobs.
  • Contact Energy cuts 10 percent of its workforce – 100 jobs gone.
  • Geon Print is in receivership. Potentially 300 are jobs affected.
  • A hundred jobs are to go as New Zealand Post business datamail replaces people with machines.
  • Construction company Mainzeal collapses. Hundreds of contractors are locked out.
  • Summit Wool Spinners sells its plant – 200 workers are made redundant.

The Council of Trade Union president Helen Kelly sees a disturbing trend.

“Job losses are definitely escalating,” she says.

“I don't think they're accelerating, but we are seeing it across a range of industries,” says Economic Development Minister Steven Joyce. “What we're seeing are tough economic times.”

The Government denies there's a crisis, and says new jobs are being created in infrastructure, food processing, oil and gas.

“According to the quarterly employment survey, about 56,000 over the last two years,” says Mr Joyce.

But Ms Kelly says the Government's playing down a serious crisis.

“The number of people in employment has decreased by 22,000 since 2008 and 81,000 new people have entered the labour market. So the gap between jobs available and people working is growing.”

Economist Ganesh Nana says put job market numbers with what we know about business profitability and confidence, and the outlook is bleak.

“You can pick out whatever numbers you like, but the reality is it doesn't feel good for New Zealanders. That's a good signal it isn't good out there.”

But while the Government maintains the country is seeing progress, it admits jobs aren't appearing as fast as it would like.

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Comments

28/02/2013 12:48:48 p.m.

Iman Olive wrote:

KATU. 'Your morsels' may mean something to you but fortunately, no-one else, because barking up the wrong tree only leads to meaningless twaddle. And for your information the Govt does NOT control the NZD because it chooses not to interfere and wisely lets market forces do that for them. Also, for your information please refer to the NZ herald 21-02-13 where the Govt has stated they point blankly refuse to contribute any advertising subsidies to Sky City saying they must be self sufficient and not rely on any ongoing Tax or Rate payer contributions toward the running of the Convention Centre. Sky City is the only tender which offered to provide the International Centre without a single cent of Tax or Rate Payer money subsidising the ongoing costs to run it, unlike the other 4 tenders which all sought continuing Govt subsidies if they won the contract.

28/02/2013 5:29:47 a.m.

katubaldy wrote:

And one last morsel I didn't include in the previous comment Iman. A large chunk of NZs unemployed are from the manufacturing sector where the govt controlled NZD rate is costing the country,and less to do with the global recession of the last four years. Also a galaxy away from the 177K jobs National's poster boy initially promised knowing full well what was happening in the world's financial sector. I mean he was an international bankster right?...Hmmmm. Try not to join political debates armed with half the facts and a 'shoot the messenger' mentality, its easier to poke holes in your argument bro.

27/02/2013 6:52:56 p.m.

katubaldy wrote:

No dude, manufacturing was thriving during Labour's surplus years and its pathetic you try to explain the difference away with govt depts expanding exponentially to suck up the unemployed by their thousands....wha? Its not the US or China guy.Really? Tourism numbers are down in the last 12 months despite the passionate man love you've got going on for Joe Key and what transpired in the document realise today was the union had already signed the deal with Warner before Key got involved. Joe Key's role in the Hobbit deal was more of a publicity stunt pandering to Warner Bros and changing NZ labour laws to rip off our own kiwi movie making workforce. Not just the actors but all the job roles involved. In fact the only thespian who did well out of the deal was your man crush guy himself...And the Convention Center will have ongoing annual 'marketing' costs paid by the taxpayers that could run into the millions at the demand of Sky City. Also the additional costs of TVNZ having to up sticks and move house...again paid by the NZ taxpayer and at the demand of Sky City...I don't want to spoil the Key-centric dream you've been living but air brushing 'your set of facts' and leaving out the other half of all your fantasies might lead to some embarrassing situations down the road for you and unfortunately for NZ as well. Suck that up fool!

27/02/2013 12:12:40 p.m.

Iman Olive wrote:

KATU. There are two main reasons unemployment under Labour was lower than now. 1)There was no world wide depression. 2)Labour hid the true unemployment figure by empire building of unnecessary Govt. department positions as they often do but fortunately National has since rationalised this feather-bedding practise yet again. There is also an ignorance demonstrated over the benefits to NZ with the win win arrangement of the Hobbit filming which would not have happened without the brilliance of Key's negotiation skills that created and/or saved many thousands of jobs and positively increased NZ tourism in the process. Likewise the International Convention Centre that will be provided without a single cent of ongoing tax or rate payer contributions. Suck it in Big Guy.

27/02/2013 7:04:20 a.m.

katubaldy wrote:

Iman showing the strange application of stats that is typical of the rights confusing debate.Better attack the messengers while you're at it huh?The NZ unemployment rate is only under 7% cos of the stream of jobless that constantly flows offshore in search of employment and a better life.The present mark is only a point or two under record levels and that sad benchmark was set by another National govt 13 years ago.Then you endorse a race to the bottom for the general public as it compares favourably with other OECD nations. Like that's even relevant to those struggling or makes a difference to out of work NZers?Next,you're all excited about the results of a meaningless poll 18 months out from the next election,and ignore Joe Keys popularity was down 10 points from last year?Hmmm. You're cheerleading for the govt, while yet more kiwis are being laid off,the IMF are calling for our currency rate to fall,SOE managers are fleecing their failing companies and the exporting sector are dealing with the ongoing 'gold' standard of the NZD. They're laughing offshore dude,that the kiwi dollar is the new 'gold'.Thats what happens when a banker runs the nation.Reports last week that its starting to impact adversely on tourism, cos who is going to look at NZ as a destination when the NZD is so expensive,and you know,tourism is pretty big here apparently? On the wrong side of deals with Talentless2, Warner Bros and Sky City when all three of those corporations have adopted a role of dictating terms to our govt now, in light of the inept fashion National dealt with them initially. $116M down the Novopay drain,$23M lost to executive bonuses helping to exacerbate Solid Energy's problems, so time to lay off more workers. Thats what you're happy with bro? Just to recap,you're excited cos of poll results no one will remember in 18 months time and tried to rationalise the jobless numbers away as not too bad..again ?As one eyed as it gets and again you're left holding onto your poll Iman.

26/02/2013 5:34:58 p.m.

Dave wrote:

KIWI. All businesses start with someone taking a risk to borrow or put up their own money. They then employ people to help them and build up from there. The 'servant' mentality is only in the mind of people who have no respect for what employers have risked and in turn offer others like yourself an opportunity to join them.

26/02/2013 9:57:04 a.m.

Mike wrote:

If employing someone so easy and makes one rich, we just need the lazy workers to get off their backsides and employ others and they will become rich!

It never worked like this but the left loonies keep telling that same story that if your employing people your oppressing people.

What gives jobs is sucessful businesses. If you dont have a sucessful business you dont have jobs. Even overseas owned is good for NZ as up to 48% of revenue is paid in GST/PAYE and helps fund NZ even before they make a profit! This left idea that if you squeeze businesses till they collapse will make it better for workers, it doesn't work. Ask those Meat workers from closed plants what striking got them? Ask the US steel workers where striking got them. Ask the UK coal union workers what their 3 year strike got them?

Striking for the sake of union ego just costs jobs. NZ wages are higher than most other countries so jobs will move overseas if pushed by union strikes.

Sure Kathy thinks businesses are evil and immorral. But businesses and money are not evil or immoral - that takes people. Kathy has applied her inner-self to business which she apparently is involved with, and come up that becasue she is evil, immoral, and evades taxes, that all business is evil and immoral. Luckily most people are pretty good, ie not evil and immoral like Kathy, so most businesses are good to deal and work for. Its just that better to work for and deal with makes better business sense, and it pays off for businesses.

Business returns in NZ are slim, and we have a high number of business failures because they are so slim. Businesses have to be better to survive, and that generally requires a stable staff, and that requires looking after staff well.

If looking at a miners wage of $70,000+ and comparing that with unemployment of more like $15,000, surely even a significant drop in pay is preferable? The unions will tell you the $15,000 is better, but never explain how.

25/02/2013 9:54:14 p.m.

Kiwi wrote:

The heart of this problme is this so alled "Master - Servant" relationship between employer and employee is an out of date throw back to Victorian England and is dsfunctional and conrerproductive in this modern age!
The truth is its not about glorifying management at the expense of workers because without workers Mangament would not exist! Its not about Managament drinking wine in the Koru Lounge while workers slave at the work face - its about Management acknowledging that it is the workers that keep them in the life they are accoustomed to and in return workesr deserve respect or they will find another "Master" elsewhere - probably across the ditch!
Get over yourselfs so-called leaders of industry - without workers you are nothing - you will not do the work yourselvles because it is beneath you - but to get others to do it you need to learn some humility and respect!

25/02/2013 5:22:10 p.m.

Iman Olive wrote:

The winging one-eyed left like 'Katubaldy' and his female alto ego/echo 'Kathy' are so biased against the current Key Government, they wouldn't know reality even when it bit them on their bums. We have "record unemployment" Katu claims even when NZ currently at 6.9% unemployment is a whole % lower than the OECD unemployment average of 7.9%. Kathy then claims "this Government is supported by the uneducated". Maybe so, but according to the latest opinion poll taken only last week, over 51.6% of the NZ voting public continue to support the Key Government regardless of them being 'uneducated' and these are the people who vote in governments which would give National enough majority if an election was held tomorrow, to govern alone. Suck that one up Kathy and Katu.

25/02/2013 3:53:04 p.m.

@Mike wrote:

"overpaid miners to take pay cuts" Get real, and look at the bosses who were really massively overpaid - not the workers! That's the problem with you natzis, you always hit the little guy when it's the guys at the top who mess things up while at the same time pocketing all the cash. The GFC was not caused by the little guys, it was caused by speculators and investors like John Key, ie the capitalists that people like you think are some sort of god. They are the ones who need to be held accountable for the misery that MILLIONS across the world are going through, and yet people like you persist in blaming the little guys at the bottom. What a travesty.