'Job creation must be a priority for the government in the coming months, particularly among our young people'
New Zealand's unemployment rate went up slightly to 4.6% in the second quarter of 2024, according to Stats NZ.
This is just higher than the 4.4% recorded in the previous quarter, continuing the upward trend in New Zealand's unemployment rate.
"Unemployment has been increasing since 2022, leaving the current quarter's unemployment rate the highest since March 2021," said labour market manager Deb Brunning in a statement.
"Recent rises in unemployment align with other economic indicators, including an increasing number of benefit recipients, a decreasing number of job vacancies, and declining GDP (gross domestic product) per capita."
Unemployment among young people has been driving the increase in unemployment rate for a year now, according to Stats NZ. In the June 2024 quarter, the youth unemployment rate for those between 15 and 19 years old is at 20.7%, up from 15.1% in June 2023.
For those aged between 20 and 24 years old, the unemployment rate increased to eight per cent, up from 5.8% a year ago.
"Young people accounted for almost half the increase in unemployment and underutilisation between the June 2023 and 2024 quarters," Brunning said.
The proportion of young people not in employment also increased to 12.8% in the June 2024 quarter, up from 11.7% a year ago.
The Employers and Manufacturers Association (EMA) said they have been expecting the increase in unemployment rate amid "skyrocketing" inquiries on restructures and redundancies.
"At the EMA, we've seen the evidence of the struggles facing Kiwi businesses, with the number of requests for help from our members in the areas of restructuring and redundancy skyrocketing this year," said EMA Head of Advocacy Alan McDonald in a statement.
In fact, they received 163 calls about restructuring and redundancy in the month of July alone.
"Our AdviceLine, which provides specialist employment advice to our members, has seen calls about restructuring and redundancy at their highest level for years in July," he said.
The EMA official also said the number of youth not in employment, education, or training is an "alarming statistic."
"[It] suggests that job creation must be a priority for the Government in the coming months, particularly among our young people," McDonald said.
Over the coming months, he noted that they are not expecting employers to hike headcount, with employers being cautious about hiring.
"We expect businesses to upskill their existing staff in the likes of health and safety and leadership courses while they wait for the economy to improve," McDonald said.
