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Unemployment rises to 6.8 percent

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Unemployment rises to 6.8 percent

3News NZ

There are now an estimated 162,000 people unemployed

There are now an estimated 162,000 people unemployed

New Zealand's unemployment rate unexpectedly rose in the second quarter as the pool of jobs shrank for the time since December 2010.

The unemployment rate increased 0.1 percentage points to 6.8 percent, the highest since June 2010, according to Statistics New Zealand's household labour force survey.

Economists surveyed by Reuters were expecting the headline rate to come down to 6.5 percent.

The number of unemployed people rose 1.1 percent to 162,000, while the employed total shrank 0.1 percent to 2.23 million.

The kiwi dollar dropped almost half a US cent to US81.17c on speculation a weak labour market gives the central bank more room to cut interest rates.

The overall fall in employment, combined with a growing working-age population, resulted in a decrease in the employment rate, Statistics NZ said in its report.

The figures showed a 0.5 percent quarterly increase in total actual hours worked, though they were down 0.4 percent from the same period a year earlier.

New Zealand's labour market has been struggling to recover after the worst recession in two decades came during the global financial crisis, and a series of earthquakes in Canterbury destroyed the country's second-biggest city.

Still, employers turned around their reliance on part-time staff in the quarter, with a 3.4 percent fall in people working shorter hours, while at the same time increasing full-time jobs 0.8 percent to 1.72 million.

The level of underemployed, which measures people in part-time work seeking more hours, rose to 109,500 from 107,600 in the March period.

Auckland's unemployment rate fell to 7.3 percent as more people stopped looking for work, while Canterbury's rate of joblessness increased 1 percentage point to 6.5 percent as the number of employed people dropped by almost 19,000.

Wellington's unemployment rate increased 0.3 percentage points to 6.4 percent.

Northland's unemployment rate of 9.9 percent was the highest in the country, followed by 7.4 percent in Manawatu-Whanganui, and Auckland. Taranaki had the lowest rate at 3.8 percent.

Youths aged 15 to 24 not in employment, education or training fell to 13.1 percent from 13.5 percent in the March quarter.

NZN

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Comments

21/08/2012 12:41:14 p.m.

Don wrote:

why unemplyment rise,paula beneth and john key sat the losts and lots jobs avaialavle around the country wheres the job,in aussie minimum hourly rate is 17.50 AS for any job,the NZ will get this rate in next 25 years,hope so

10/08/2012 3:06:05 p.m.

alex wrote:

Research: U6 Rate for the real unemployment stat.

A PM with a background in corruption!

Get the facts nz: 'Max keiser report'

9/08/2012 4:58:56 p.m.

John wrote:

The Smiling Assassin is destroying our country - moreso than Shipley or any of the other crazy National leaders - what are YOU going to do about it?

9/08/2012 2:11:26 p.m.

madness wrote:

Is it any wonder the young can't get jobs when all the ones elegable to retire aren't. Why would they when they can get their pension and wages. I know a lady who is going on a big holiday overseas every year because she saves her pension which she doesn't need. She saves around 18,000 a year because as she says she doesn't need her pension to live on. There is half of your problem. The other is the lack of apprenticships. All the trades will suffer in the next 10 to 20 years as all the tradesmen retire. Like you say we are losing a whole generation and of course the govt will care when it is too late as usual. John Key is selling us up the river with his plans that appear to be hot air and wind. 2 more years of this and imagine the mess the next party is going to have to clean up and I would feel safe to say it will be another party. I is a shame a snap election can't be called because I think alot of people would vote very differently now that they have seen the real faceof the monster we have ruining our country...........and he doesn't care because he will just go to his fancy apartment in Hawaii and live their.

9/08/2012 1:41:22 p.m.

vicki wrote:

The rich may be getting richer, but they must be very unhappy people and I wouldn't give up a broke as likestyle for one single day as rich banker.....as for unemployment, if the rich are getting richer then society will not be benefiting, trickle down does not work, so I am not suprised at all. National is not a government that improves the lot of the majority, they are there to improve the lot of a few (the rich). In time, the world will change, the rich will not be able to accumlate unnecessary gross excessive wealth like they do and there will be abundance for everyone. We are evolving into a better being, not a worse one, so I have faith in years to come the world will become a fair place for all. I teach my children to look at the positive side of life, if there are not jobs - create one, start your own small business, use your fantastic brain!

9/08/2012 1:04:56 p.m.

mmm wrote:

Meanwhile the rich get richer.

9/08/2012 1:02:14 p.m.

Wiseacre wrote:

John Key was quoted in the Herald this morning - "The Government's preferred position is not to be stimulatory" Key said. Is that the extent of their economic plan? To *not* do something? By all accounts, the Government's *preferred position* is not working. If they don't want to stimulate the economy and create jobs, what exactly are they there for? Sell us out, create job insecurity and drive wages down? With a side-order of beneficiary-bashing to make their supporters feel superior? This National-led Government is an abysmal failure.

9/08/2012 12:53:41 p.m.

David wrote:

@Mike B if labour came up with solutions National would steal them and claim them as their own so why would they be that stupid?. Key said he had a vision, key said he wanted pay parity with Australia, Key said he wanted a brighter future.... and nearly 5 years on... he has delivered nothing.

9/08/2012 12:01:11 p.m.

alex wrote:

The real unemployment must 13.6% Research: The U6 rate for unemployment. Neo-classical economist are corrupt!!

9/08/2012 11:46:56 a.m.

Mike b wrote:

It is time for the government to stop wasting time on stupid bills that are just wasting time and money. We need to see a major concerted effort to reduce the unemployment rate. Labour could come up with some workable solutions and score some "brownie points" with the public as well. Let’s see who is going to do something about this very disturbing trend that effects us all. The time for excuses is over. It is now time for action! Watch this space.