Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Struggling economy needs Government focus on jobs

CTU Media Release

20 December 2012

Struggling economy needs Government focus on jobs

“The weak growth of GDP in the September quarter and a revision downwards of the June quarter confirms that the economy is struggling,” says CTU economist, Bill Rosenberg. GDP rose only 0.2 percent in the quarter and the June quarter increase was revised downwards from 0.6 percent to 0.3 percent.

“The economy is not producing enough jobs. A change of Government focus is overdue. The focus should be on creation of good jobs, not a fixation on returning the government books to surplus too quickly. Speeding to a surplus is killing jobs.”

Manufacturing fell significantly in the last three months. “A fall of 1.1 percent in just a quarter confirms that we need to have policies that support manufacturing. It produces many good jobs, and supports 1.7 jobs in the rest of the economy for each one in manufacturing. Manufacturing generates a quarter of the economy’s exports and could do much more with the right support”, says Rosenberg.

“Even the output of primary industry, which is the strongest exporter at present, fell by a huge 3.2 percent in the quarter, though growth has been strong for the year.”

“It is positive to see construction activity increase because it provides jobs in a very depressed sector, and new buildings also lead to demand for materials, appliances and other products in the rest of the economy. However there is little sign of a rebalancing of the economy towards more high value exporting”, Rosenberg said.

“A decline in business investment in plant, machinery and equipment is not a good sign for future job creation. Businesses are running down inventories rather than taking on more staff.”

Flat household expenditure reflects the hard times that many families are experiencing.

“Current Government policies with a focus on a narrow business growth agenda are not addressing the real issues and are not working. It’s time for a new look at the ‘leave it to the market’ policies the government is following”, Rosenberg concluded.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On The IOC’s Treatment Of Russian Sport, And Lone Wolf Terrorism

A blanket ban on Russian athletes would also have exposed the IOC to criticism that its treatment of Russia would have been marked contrast to its treatment say, of the track and field team from Kenya – a country about which the IOC has very similar doping concerns. More>>

ALSO:

Sounds Like A Plan: Auckland Council Receives Unitary Plan Recommendations

A key milestone in New Zealand planning history was reached today when the Independent Hearings Panel delivered the reports containing its recommendations on the Proposed Auckland Unitary Plan. More>>

ALSO:

National Park Expansion: Forests And Coast Of Kahurangi Protected

Five parcels of high value land totalling more than 890 hectares have been formally gazetted as part of the National Park. More>>

ALSO:

PPP Go-Ahead: SkyPath Gets Unanimous Support

Auckland’s SkyPath project has been given the go-ahead to be delivered through a public private partnership, after a unanimous decision at today’s Finance and Performance Committee. More>>

ALSO:

Gordon Campbell: On The Reserve Bank, The UN Shortlist, And Trump

Can there really be there any link between the US presidential elections and yesterday’s RBNZ signals on interest rates and the NZ dollar? Well, maybe. And it would be this: the improving US economy is reportedly putting a tailwind behind the US dollar, and rendering the actions of our Reserve Bank virtually irrelevant. More>>

ALSO:

Gordon Campbell: On What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news