Sharp rise in unemployment demands Government action 4.2.10

The sharp rise in unemployment in the December 2009 quarter to 7.3 percent (the highest in 10 years) raises great concerns for the 168,000 unemployed, and for the continued recovery of the economy, said CTU President Helen Kelly. The rise brings numbers seeking work to the highest level since 1993 and considerably exceeds most predictions which were around 6.8 percent. “It raises real fears that, with unemployment still rising, we will see a peak well above 7.5 percent and unemployment lingering on at high levels for several years,” said Kelly.

“The Government must refocus on jobs. Its growth agenda to be announced next week must have a strong emphasis on creating jobs and supporting workers and their families through these difficult times. This should include strong support for increasing skills acquisition and transition between jobs for those out of work. The numbers show that it is much too early to cut back on spending to stimulate the economy. We may be emerging from the recession but many New Zealanders have yet to experience this and need support.”

Jobless numbers (those either officially unemployed, available but not seeking work, or actively seeking but not available for work) rose by 72,200 people during the year and now stand at 275,900.

Long term unemployment is an increasing worry. During the year, the number of long term unemployed (people unemployed for longer than 26 weeks) more than doubled to 40,500 or 25.5 percent of all job seekers.

M?ori and Pacific workers continue to be hit hard. Unemployment rates for M?ori now stand at 15.4 percent or 24,900 people (up over the year from 9.8 percent) and Pacific peoples 14.0 percent or 12,300 people (up from 7.8 per cent a year ago). Youth unemployment (15-19 year olds) now stands at 26.5 percent or 45,300 people.