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


NZ budget to show faster drop in unemployment rate, Key says

NZ budget to show faster drop in unemployment rate, Key says

May 12 (BusinessDesk) - Prime Minister John Key has hit back at the opposition Labour Party’s pledge to cut unemployment, saying Thursday’s budget will show a faster drop in the jobless rate than previously estimated.

The Treasury will forecast unemployment at 4.5 percent by 2017, lower than the 5.2 percent rate projected in the December half-year economic and fiscal update, and down from a current rate of 6 percent.

“The target actually in the budget is 4.5 percent, I can tell you that for a fact, for 2017, that’s what it’s tracking at,” Key said at his weekly post-Cabinet press conference.

Labour leader David Cunliffe today pledged to reduce the jobless rate to 4 percent by the end of his first-term, which would be in 2017, if elected, saying the Opposition would create 20,000 more jobs than what the National-led administration is projecting.

Cunliffe said Labour would drive jobs growth through a combination of policies including more government buying of Kiwi-made products, stimulating production of higher-value wood products to boost forestry jobs, and create jobs in the construction sector via its 'KiwiBuild' plan to build 100,000 affordable homes over 10 years.

Key rubbished Cunliffe’s announcement, saying a prospective Labour-Green government opposed sectors such as oil and gas and the expansion of agriculture, and that meant “there’s no way they’re going to get unemployment going down.

“It’s not about what target you have or what figure you have, it’s what policies you have to back that up,” he said.

Government figures last week showed faster than expected jobs growth in the first three months of the year and a greater level of participation, indicating the flood of inbound migrants were finding work without driving up wages. Because the size of the workforce was growing, the unemployment rate stayed at 6 percent.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news