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Unemployment drops but many NZers working poor

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Thu, 09 Feb 2012 4:13p.m.

Although unemployment is down, many people are not earning enough to survive without help (Reuters file)

Although unemployment is down, many people are not earning enough to survive without help (Reuters file)

By James Fyfe

Positive employment figures released today belie the true reality of New Zealand’s workforce, with many working poor struggling to make ends meet, says the Auckland City Mission.

Statistics New Zealand today released figures showing 7,000 fewer people were unemployed in the December 2011 quarter compared to that of the September quarter.

The unemployment rate fell to 6.3 percent from 6.6 percent, while the employment rate remained unchanged at 63.9 percent.

However, while the figures show an increase in part-time work there is a decrease in full-time employment, and those working are being employed for less hours.

Diane Robertson of the Auckland City Mission says many people now “fall between the benefit system and the wage system”.

She says many workers earn too much to receive government assistance but not enough to adequately cover living costs.

“An increase in part-time employment and a decrease in full-time employment, along with the increased costs in housing and food, makes it very difficult for families not eligible for the benefit,” says Ms Robertson.

The figures also reveal that although unemployment has dropped, the labour market is not growing.

Ms Robertson says workers she has spoken to find it difficult to cope with the lack of job security.

“People need to have a regular and stable supply of work in order to feel comfortable and these statistics show there is not a growing supply of work,” she says.

“People are worried that their job won’t be there in six months time; that means less job security, and people need job security”.

Ms Robertson says those most affected are often casual and contract workers who lack job security, and bounce between part-time work and the benefit.

She says the mission is there to help all people, with or without work, who are struggling. 

“When you run out of petrol no-one will give you free petrol, but you can get free food,” says Ms Robertson.

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Comments

09 Feb 2012 06:26p.m.

christine wrote:

i work in a resthome want more work its very hard for kiwis people from asian country want our jobs also because they have to have the hours unemployment would be down if kiwis were treated better in their own country no wonder kiwis are leaving

09 Feb 2012 05:34p.m.

Suzanne Pierce wrote:

It is good to see that this aspect of part time employment is now being noted. My niece is a caregiver. Her contract specifies a minimum number of hours per week as 0. It has been extremely stressful for her when she has no idea of how many hours she will be paid for each week. She has had to take a second job. This one has the minimum number of hours at 8 hours per week. No one can gain financial freedom of any kind under such arrangements. She has to provide her own transport to take up these positions so we have had to provide her with a car and pay the expenses so that she can work. She loves what she does but it is definitely not a satisfactory situation. Fortunately she has no dependents because I can not imagine how all those in similar positions manage - yet there must be thousands who are doing their best to do just that.

09 Feb 2012 05:27p.m.

anne wrote:

The december figures dont take into account that alot of
staff is employed over the xmas season and once that is over they are unemployed,the next quarter should show the real stats.

09 Feb 2012 05:26p.m.

Sam wrote:

employment fell 3% ? this not students returning to study?

09 Feb 2012 04:59p.m.

johnmillan wrote:

Yes over 7,000 have left New Zealand for a brighter future.