Media Release: Friday 26 September 2014

Unemployment drops and local economy on the up

Unemployment in Horowhenua has dropped 1.9 percent from a year ago and is now at its lowest rate since March 2009.

Currently at 8.7 percent, down from 10.6 percent last year, the decrease is attributed to local firms showing an increased willingness to hire, according to Infometrics economic monitoring commissioned by Horowhenua District Council.

Furthermore, it is expected that employment in the District will continue to grow in the year ahead as increasing private sector investment translates into new job opportunities.

The Infometrics monitoring report also shows that Horowhenua enjoyed a sharp upturn in economic activity over the first half of 2014, with the District's economy growing by 2.4 percent.

Positive trending economic conditions are also being reflected in confidence to spend and invest.

House prices have shown modest growth, rising 3.3 percent over the year to June, having been relatively stagnant for some time. Likewise, retail spending in Horowhenua is also up, by 6.6 percent, and 3 percent above the national increase.

The Infometrics report says that despite the positive indicators, the sharp drop in the dairy pay-out for the current season will have some adverse effect.

However, Horowhenua Economic Development Board chair Cameron Lewis expects this to have only short-term impact.

"It will see farmers being a bit more careful with spending over the next 12 months - covering the essentials but possibly deferring some maintenance and capital expenditure. But it's expected to recover next season so things will bounce back pretty quickly."

Mr Lewis says the Economic Development Board is hearing positive feedback and an optimistic outlook from the community and that this backs up the numbers in the Infometrics monitoring.

"Overall, here in Horowhenua we're making steady and determined progress. Confidence is improving and we're seeing greater investment in the District. This is all leading to a more positive and progressive vibe within the local community," he said.

"Economic development is a journey and will take time, but with ongoing efforts and collaboration we'll continue to make inroads."

ENDS

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