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

 


UPDATE: NZ jobs data shows migrants finding work

UPDATE NZ jobs growth, high participation rate show migrants finding work

(Includes economist comment)

By Paul McBeth

May 7 (BusinessDesk) - New Zealand’s rapid jobs growth and record participation in the first three months of the year show the country’s high migration is getting mopped up by the local labour market and hasn’t driven up wages.

Employment grew 0.9 percent in the quarter, ahead of economists’ forecast of 0.6 percent, and was up 3.7 percent on the year, according to Statistics New Zealand. The participation rate rose 0.4 of a percentage point to 69.3 percent, the highest level since the series began in 1986, and ahead of the 68.8 percent forecast.

Still, that didn’t fuel higher wages, with the labour cost index, which measures wage inflation, rising at a quarterly pace of 0.4 percent across all sectors and including overtime for an annual lift of 1.6 percent. Private sector ordinary time wages rose at a quarterly pace of 0.3 percent, ahead of the 0.2 percent increase in public sector pay.

“The data shows unequivocally the economy’s on fire,” said Stephen Toplis, head of research at Bank of New Zealand in Wellington. “A substantial amount of migration is going straight into employment, which is spurring domestic growth, but at the same time alleviating pressures that might be on the labour market.”

The country’s net inbound migration was at an 11-year in March as fewer kiwis shift to Australia as the economic fortunes of the neighbouring nations turn to New Zealand’s favour. Those growth prospects have also helped attract new migrants, with larger net inflows across Asian nations including China and India.

New Zealand’s record participation rate meant jobs growth didn’t reduce the unemployment rate, which was unchanged at 6 percent in the quarter, above the forecast 5.9 percent.

Employment growth in the quarter was led by gains in the agriculture, forestry and fishing sectors, with the number of jobs rising to 156,800 from 149,500 in the December period, while construction jobs were up to 196,100 from 185,000.

Unemployment in Auckland rose to 7.3 percent from 6.3 percent in the December period, with a fall in employment and an increase in joblessness. Canterbury’s unemployment rate slipped 0.1 of a percentage point to 3.3 percent, with a pick-up in participation and an increase in jobs.

Prime Minister John Key yesterday announced policy to provide a $3,000 sweetener to unemployment beneficiaries who secure full-time work for more than 90 days if they relocate to the Canterbury region to help with the rebuild effort.

Under-employment fell, with 4.1 percent of part-time workers willing and able to take on more hours, from 5.3 percent in the December quarter.

The quarterly employment survey, also released today, showed ordinary time private sector wages rose 0.7 percent to $26.16 in the December quarter, and were up 2.9 percent on an annual basis. Public sector ordinary time wages rose 1.7 percent to $35.86 in the quarter, for a 1.8 percent annual increase.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news