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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news