Overall, minister says labour, salary data paint a 'positive result'
A record number of Kiwis are employed in New Zealand as employment hit nearly 70% in the June quarter, according to data from Stats NZ.
Stats NZ data revealed that the number of employed individuals increased by 113,000 (4%) to 2,927,000 in the year to the June 2023 quarter.
"The employment rate reached 69.8%, the highest rate recorded by the HLFS (Household Labour Force Survey) since the series began in 1986," Stats NZ said in a media release.
Unemployment rate also hit 3.6% in the June 2023 quarter, slightly up from the 3.4% last quarter, following a rise in the working age population and as more people made themselves available to work.
Finance Minister Grant Robertson said the latest labour force data indicate that the country's economic plan is working.
"We have added 322,000 jobs since 2017, unemployment continues to be relatively low, firms are continuing to hire despite an uncertain global environment and inflation is heading in the right direction," Robertson said in a statement.
However, the Employers and Manufacturers Association (EMA) said the small spike in unemployment reflects the situation on the ground for its members.
"We have been talking to members throughout late June and July, and those looking forward were pretty pessimistic about hiring new people as they noticed a downturn in their forward pipelines for orders and work," said Alan McDonald, EMA Head of Advocacy, Strategy and Finance, in a statement.
McDonald acknowledged that while there were more applicants for vacant positions this year, finding the right talent remains a challenge.
"That's still a bit patchy with technical skills still very difficult to find, and basic skills among those first entering the workplace lacking in terms of work readiness," McDonald said.
According to the EMA, employers requesting assistance on restructuring and redundancies also "more than doubled."
"In June that was just under 100 inquiries in the month from businesses wanting to restructure and/or make people redundant," McDonald said. "Our consulting team has also noticed a sharp increase in the volume of their work in redundancies and restructuring and our legal team is also fielding more inquiries in this area."
Meanwhile, average hourly wages also rose 6.9% to $39.53 in the year to the June 2023 quarter, according to data from Stats NZ.
Robertson said this means wages are "keeping pace with inflation."
"We know that many Kiwis are doing it tough in the face of cost-of-living pressures, but they do so while in paid work and with wages growing faster than inflation. That helps ease some of the pressure they are under," he said.
Overall, the minister said employment and wage data point to a "positive result" amid a challenging global environment.
"Our focus continues to be on keeping the economy moving in the right direction. Unemployment is forecast to rise in a deteriorating global economy," Robertson said. "We will continue to continue to invest in creating the conditions for better-paying high-quality jobs, growing wages, and more opportunities in a fiscally sustainable manner. Our job is far from over."
