The drop in the unemployment rate is welcome news but the
latest figures also highlight the growing pressures in an
economy where business are struggling to find workers,
National’s Finance spokesperson Amy Adams says.
“The Government inherited a strongly performing
economy and today’s employment data, being a lag
indicator, reflects that and shows the importance of a
well-performing, flexible labour market. The question then
arises – why overhaul employment law now?
“In
addition, surveys show difficulty in finding skilled workers
and changes to employment law are among the biggest concerns
for business and have contributed to a slump in confidence.
“Today’s numbers confirm what businesses have
been saying for some time about labour market constraints
are real and present a significant risk to future economic
growth.
“Today’s numbers also reveal the cost of
living challenges facing many New Zealand households. Behind
the strong headline numbers we saw wage growth at only 0.5
per cent in the latest quarter, half the growth rate of the
cost of living (as measured by CPI).
“It’s
pretty simple. Costs are going up faster than incomes. And
that means many households are going backwards –
particularly those on the lowest incomes.”
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