Data released today by Stats NZ shows how the Luxon Government has completely wrecked the job market.
“Since the Luxon Government took office, unemployment has increased from 4 percent to 5.7 percent, and the number of people unemployed has increased by 51,000,” says Sandra Grey, President, New Zealand Council of Trade Unions Te Kauae Kaimahi.
The unemployment rate is now at its highest level since 2015, and there are more people unemployed than any time since 1993.
“Underutilisation has increased from 10.8 percent to 13.8 percent, with a record 438,000 people lacking work. The Luxon Government pledged to address the cost-of-living crisis, but you can’t do this by driving people into un- and under-employment,” says Grey.
“Long-term unemployment is at crisis levels. Over 72,000 people have been out of work for more than 6 months, up over 150 percent since 2023. People in long-term unemployment make up 43 percent of total unemployed, the highest this rate has been since 1995,” says Grey.
Luxon’s mismanagement has been devastating for Māori and Pasifika workers. Māori unemployment has increased to 11.1 percent and Pasifika unemployment to 11.8 percent. Underutilisation rates have climbed above 20 percent for both groups.
“The Luxon Government has delivered nothing but three years of pain for these communities,” says Grey.
“Since 2023 youth unemployment has increased from 10.3 percent to 17 percent, and the number of young people not in employment, education, or training has increased to 95,300, the highest number on record,” says Grey.
“Jobseeker numbers have skyrocketed under the Luxon Government. Compared to when Luxon took power, almost 31,000 more people are on Jobseeker Support, an increase of 16 percent. This is despite the Government making it increasingly hard for people to get welfare support when it’s needed,” says Grey.
“To make matters worse, real wages are going backwards on all measures. When adjusted for inflation, annual wage growth measured by the labour cost index fell 1.6 percent and average hourly earnings fell 0.8 percent. How are working families meant to make ends meet when their wages aren’t keeping up with prices?” says Grey.
“No matter what indicator you look at, things have just gotten worse. On many metrics, the job market is in a worse state than any time since the early 1990s. We’ve seen mismanagement of historic proportions from Luxon, and this has had devastating impacts on workers and their whānau right across the country,” says Grey.
New Zealand’s unemployment rate is well above the OECD average of 5 percent, and way above Australia’s rate of 4.6 percent. “Other countries have faced the same inflationary challenges, but have managed this without destroying their job markets,” says Grey.
“The numbers are crystal clear: the Luxon Government has failed the working people of New Zealand. It’s time to vote for change,” says Grey.