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

#SaveCampbellLive : Mediaworks Delivered 104,000 Petition Signatures At TV3's Newton HQ
#PonyTailGate #TailGate Full Coverage

Pukeahu Park : ANZAC 100th Anniversary Dawn Service In Pictures

Roughly 18,000 people gathered this morning at Pukeahu Memorial Park for the Anzac day centenary. Anticipating the large turnout, patrons arrived as early as 4.30. It was virtually impossible to get near the Memorial after 5am. By 6, the crowds on Taranaki Street had stretched as far back as the Z Petrol station.

The screens erected around the park displayed the live events to those who had turned up. The heat generated by the huge number of people caused many to take a turn. Medics and ambulances were on hand for the fainting crowd members. Only twenty minutes into the ceremony, one medic said they had already dealt with 15 to 20 spells. More>>

 

PARLIAMENT TODAY:

War: What’s To Commemorate?

Gordon Campbell in Werewolf: Is there anything that can be validly commemorated on this 100th anniversary of Gallipoli? Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915. More>>

MORE IN WEREWOLF:

ALSO:

Peter Ellis Case: Minister Declines Request For Commission Of Inquiry

Justice Minister Amy Adams has declined a request from supporters of Peter Ellis for a Commission of Inquiry on the basis that an inquiry cannot be used to determine the liability of any person. More>>

Quakes: New Process For Red Zone Crown Offers

Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

ALSO:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news