Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Fall in unemployment is good news!

Media Release 4 February 2000

Fall in unemployment is good news! Not inflationary

The sharp fall in unemployment just announced is excellent news, and the shock horror reports of some commentators are wildly astray; neither should the figures be treated negatively by the Reserve Bank, the Employers and Manufacturers Associations says.

“Some reports seem to be missing the fact that it is far more productive for people to be employed than unemployed and on welfare,” said the Chief Executive of the EMA (Northern) Alasdair Thompson.

“Fewer people dependent on the dole and welfare means government spending is reduced, which reduces inflationary pressure.

“It is really annoying to hear economists and other commentators again putting a negative interpretation on good economic news.

“Of itself the increase in employment is no reason to prompt a tightening of monetary conditions with higher interest rates.

“Similarly, higher capacity utilisation in our industries can improve the use of capital equipment and lower unit costs without necessarily raising prices in our open, competitive economy.

“Overall, prices could well remain neutral over the next few months, even if our questionable productivity figures are not showing positive gains just yet. The Reserve Bank should reflect on its recent hasty statement just hours ahead of an unexpectedly, very low inflation figure.

“The risk from raising interest rates too soon is that the investment in new equipment and other capacity expansion could be delayed, and we would then be genuinely at risk.”

Further comment: Alasdair Thompson
Phone Bus 09 367 0911
Home 09 303 3951
Mobile 025 982 024



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Emission Statement: No New Coal Boilers For Fonterra

Fonterra is shaving eleven years off its coal target, as it announces a new commitment to reduce its reliance on coal. More>>

ALSO:

Long Time Coming: Soil Turned On Waimea Dam

After almost 20 years of planning and a 'gruelling' process to keep the project on track, the Waimea Community Dam, one of the Tasman District's largest-ever projects, is now under way. More>>

Where's My Drone Pizza: Govt's Drone Plan 'Will Help Economy Take Off'

The paper Taking Flight: an aviation system for the automated age sets out the Government’s vision for how drones can be better integrated into the current transport system to develop a thriving, innovative and safe sector. More>>

ALSO:

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO: