Export issues the source of unemployment problem

Export issues the source of unemployment problem - 9 August

A lack of support for the export sector is behind growing unemployment numbers say the New Zealand Manufacturers and Exporters Association (NZMEA).

Statistics New Zealand reported this morning that the unemployment rate has risen in the June quarter despite predictions it would drop.

NZMEA Chief Executive John Walley says, “It is clear that debt will constrain spending and damage growth and employment in the domestic economy, so any real growth and recovery has to flow from the external sector. Sadly we are still no closer to balancing the economy and helping exporters to provide the lift New Zealand needs.”

“For export growth the key issue is the exchange rate. Exporters will not invest in new capacity and generate new jobs when the returns for doing so are small and unpredictable. The high and volatile exchange rate we are experiencing creates exactly this situation.”

“On our own survey staff numbers have been down in nine of the last ten months. That suggests a lack of confidence in the future and an uncompetitive exchange rate underpins this.”

“We have seen other countries including: the United States, the United Kingdom, Japan and Switzerland acting to support their exporters. It is time that our Government followed their lead to create opportunities in our job market rather than choosing to do nothing.”

© Scoop Media