But it's not good news for everyone
New Zealand’s unemployment rate has dropped to 4.7%, marking a far more positive outlook than predicted in the wake of the pandemic.
The latest Stats NZ figures show more people were in employment during the first three months of this year than the previous quarter, however the underutilisation rate has also risen by 1.8% year on year. The indicator captures the number of people who are in part-time employment but are still seeking more hours.
Speaking to HRD, Brad Olsen, senior economist at Infometrics, said the underutilisation rate indicates that while employers are feeling more confident about their balance sheets, they are still treading carefully.
“We saw the part-time rate increased, the full-time rate fell and the total number of hours also fell 2.3% in March so it does highlight that there is that additional capacity in the market,” he said. “Workers are wanting to do more but businesses are not quite confident that they have enough economic activity and work to be done. It shows there is still caution from employers at the moment.”
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The jump in underutilisation came almost exclusively from women, with an increase of 7,000 females in part-time work over the last quarter compared to barely any change for men. This is likely due to the nature of part-time work which is more pre-dominantly occupied by women, especially among those with childcaring responsibilities.
In a more positive sign for the female economy, the unemployment rate for women fell from 5.3% to 4.7% - and now sits level with men.
“We have seen a better result for women in this quarter but we know the overall impact for women remains the hardest hit throughout the pandemic,” Olsen said. “With the rise in underemployment focused on women in the last quarter, more women are employed but at the same time, are still wanting to do more.”
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Looking ahead, Olsen said New Zealand’s jobs figures are likely to fluctuate as the year continues. But based on the last quarter’s “upbeat result”, the labour market is proving to be far more resilient than was expected just a year after New Zealand’s first lockdown.
The seasonally adjusted number of people in unemployment fell by 5,000 over the quarter, with the number of unemployed women falling by 8,000, offset by an increase of 3,000 men. Year on year, 13,000 more people were unemployed – 9,000 more men and 4,000 more women.
