Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Government needs to ensure economy raises living standards

Government needs to do more to ensure economy raises living standards for all

Figures out today show that what New Zealanders produced, measured by our Gross Domestic Product (GDP), increased by 1.1 percent in the three months to September.

“But while these figures look good on paper they don’t tell the whole story. These figures hide the reality that too many working Kiwis are struggling to make ends meet. The economy is something that we control and for many people it’s not working. We are still in a low wage, low value trap,” says CTU Economist Bill Rosenberg.

“While GDP increased 1.1 percent over the three months to September, and 3.0 percent year on year, it doesn’t do much to improve our living standards and doesn’t make life fairer. What was produced per person in New Zealand increased only 0.9 percent over the year because of strong population growth at 2.1 percent over the year. That means that what is available to increase our standard of living is increasing only slowly - much more slowly than in the 2000s when it increased by 2.6 percent per year on average.”

“Per hour worked, I estimate that New Zealand’s production went backwards by 1.6 percent over the year. That is, labour productivity fell 1.6 percent* in the year to September compared to the previous year. It fell 0.2 percent in the three months to September alone.

“In the long run wages cannot rise sustainably if productivity is falling,” Rosenberg says.

“The Government has a crucial role to play and can do much more. Kiwis need the Government to take action and move the economy away from low wage industries such as tourism and low value commodity exports like milk powder and logs towards higher value goods and services. We need employers much more committed to raising the skills of the people they employ. We need good employment law that ensures that the income that is created by higher productivity flows into wages and salaries,” Rosenberg said.

*This is after correcting for the changes in the Household Labour Force Survey from June which led an artificially high increase in hours worked in the June quarter.

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.