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Strong job growth in March quarter


Hon Steven Joyce
Minister for Tertiary Education Skills and Employment

4 May 2016
Media Statement

Strong job growth in March quarter

The quarterly Household Labour Force Survey has shown strong employment growth in the March quarter, with 28,000 more jobs added to the New Zealand economy.

“This is the second strong quarter of job growth in a row,” says Tertiary Education, Skills and Employment Minister Steven Joyce. “Overall the economy has created 51,000 new jobs over the last six months, which underlines a strong economic bounce-back since the slower growth period in the first half of the 2015 calendar year.

“Construction and professional services have driven the employment growth. There were 17,500 more people employed in each of these sectors over the year to March 2016. Much of that growth was in Auckland. The level of construction employment in Canterbury has also held steady, suggesting the rebuild still hasn’t quite reached its peak,” Mr Joyce says.

Labour force participation grew 0.5 per cent in the quarter, retracing some of the 1.0 per cent decline over the 2015 calendar year. This led to an increase in the unemployment rate to 5.7 per cent, up 0.3 per cent on the revised figure for the December quarter.

“Real wage growth remained strong, with average weekly wages up by 2.3 per cent over the past year, considerably higher than inflation of 0.4 per cent. Low inflation means that wage growth is directly benefiting hardworking Kiwis and their families.”
Other highlights include:
· An increase in the number of women in full time work, up 1.4 per cent (10,600 people)

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· The unemployment rate for Pacific peoples decreased 2.3 per cent over the past year

· The South Island unemployment rate over the last quarter remains low at 4.0 per cent, while the North Island’s unemployment rate is 6.6 per cent

· Bay of Plenty’s unemployment rate is the lowest in the North Island, at 5.1 per cent

“New Zealand’s employment rate continues to be the 3rd highest in the OECD with 65.1 per cent of all adults in employment. That compares with 61 per cent in Australia, 60 per cent in both the UK and US, and 52 per cent across the European Union. The participation rate is also the third highest in the OECD.

“New Zealand is continuing to experience solid growth, more employment and higher wages, along with low inflation. Despite some global economic headwinds, New Zealand businesses are performing well and adding jobs for Kiwis. The Government will continue to implement its Business Growth Agenda to encourage businesses to have the confidence to invest, grow and employ more New Zealanders.”

ends

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