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

 


Recovery in unemployment and wages painfully slow

Recovery in unemployment and wages painfully slow

“Workers are missing out on a fair share in the economy as unemployment remains high and wages are stagnant”.

CTU Economist, Bill Rosenberg says “It is disappointing that unemployment is still at 6.0 percent, or 147,000 people, given the growing economy. We have the 5th highest GDP growth rate in the OECD but are 12th in unemployment despite having been hit much less hard by the Global Financial Crisis. New Zealand’s unemployment rate is in its 19th consecutive quarter that it has been higher than Australia’s – by far the longest run recorded, despite being lower than Australia’s for two-thirds of the time since 1986.”

“At this stage in the recovery, New Zealand’s unemployment rate should be much lower. We should be disappointed it isn’t below 5.0 percent rather than seeing it creep down at a glacial rate. Six years ago, before the crisis began, it was at 3.5 percent (December 2007), and government efforts should be focussing on getting it back to there.”

“A large part of the increase in employment is in part time work. The number of part time workers rose 7.0 percent over the year but the number of full-time workers rose only 4.2 percent. Total hours worked actually fell in the December quarter in seasonally adjusted terms, and underemployment – part-timers wanting more hours or to work full time – has risen steeply from 95,400 in December 2012 to 122,600 in December 2013. There are still 257,100 jobless, and although that has fallen over the last year it is still a large number of people looking for work.”

“We have yet to see the strong increases in wages the Minister of Finance said should be showing through,” says Rosenberg. He points out that the Labour Cost Index rose only 1.6 percent in the year, just keeping up with inflation, and rose less than the 1.8 percent a year before. Almost half of employees – 46 percent – did not receive a pay rise in the last year. For those that did get an increase, the amount they got fell – the median increase was 2.4 percent, down from 3.0 percent a year before. The average increase was 3.1 percent, down from 3.7 percent a year before.

The average hourly ordinary time wage rose only 0.2 percent in the December quarter after a strong rise in the previous quarter. “Even the 2.9 percent increase in the year is less than what is necessary to recognise growing productivity and cost of living, and a need for a catch-up after years of stagnation”, Rosenberg says. “It is still only 1.6 percent above what it was in December 2009 after correcting for CPI inflation. The LCI is actually 1.2 percent lower in real terms than it was at that time.”

The gender pay gap in average hourly ordinary time wages fell from 13.4 percent to 13.2 percent over the year, but is still higher than the 12.9 percent two years ago. The male rate is $29.85 and the female rate $25.92.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Digital Evolution: Scoop Independent News Launches "Operation Chrysalis"

From today Scoop is beginning a process of public consultation with the political, business and civil society groups it has served for the past 15 and a half years.

"It is hoped that in time - with new leadership and increased community engagement - the chrysalis will incubate a new kind of Scoop, one which can sustainably continue Scoop's Mission 'to be an agent of positive change'", says Scoop Founder, Editor and Publisher Alastair Thompson.

"As big publishing shrivels, public participation in contributing and spreading news has grown. Scoop has evolved with this wave by providing an independent platform, committed to upholding democracy, providing a voice to all, and providing the public easy access to information about decisions which affect them." More>>

 

Parliament Adjourns:

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

TAIC: Final Report On Grounding Of MV Rena

Factors that directly contributed to the grounding included the crew:
- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news