National Distribution Union
Thursday 3 February, 2011.

Latest unemployment stats show risk of a jobless recovery

New Zealand is at risk of having a jobless economic recovery, the National Distribution Union warned today.

Latest jobs statistics show unemployment has risen to 6.8 per cent in the December quarter.

“Despite recent upbeat noises from forecasters and economists, there are still 158,000 New Zealand workers officially unemployed.”

“Yes, there are some signs of a recovery Commodity prices are up, but that increases costs for New Zealand consumers as well.”

“But there is a real risk that as farmers pay down debt, consumers hold off on spending and firms avoid taking on new staff – many jobs lost in the recession will not be replaced.”

"The New Zealand economy needs more stimulus measures to ensure that job growth occurs.”

“An increase in the minimum wage to $15 needs to be a core part of that stimulus.”

“So too does ensuring New Zealand timber and textiles are used in Canterbury reconstruction work, Job Support Schemes are brought back for sectors facing redundancies such as wood processing, and a new approach to monetary policy to help keep jobs in the export sector.”

“Nearly two years on from the Prime Minister’s Jobs Summit, we need to see some real action from government on keeping New Zealand workers in jobs. By sitting on the sidelines the Government is contributing to unemployment levels remaining high,” Robert Reid said.

ENDS

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