· Average hourly wages increase 7.4 percent, outpacing inflation at 7.2 percent

· Unemployment at 3.3 percent

· Economy encourages more people into work, with the participation rate hitting a record high 71.7 percent

Wages are outpacing inflation as the strong economy saw people enter the workforce in record numbers, showing the Government’s plan to grow the economy and incomes is working.

Stats NZ figures show the unemployment rate remained at 3.3 percent in the September quarter. An extra 35,000 people were employed in the quarter, leading to a record high number of 2.85 million people in work. The average hourly wage rose 7.4 percent to $37.86.

“This is a very positive outcome. Unemployment is low, more people than ever are in work and wages are growing faster than inflation to help them meet cost of living pressures. This is something worth celebrating and shows our economic plan is working for New Zealanders despite the challenging global environment,” Grant Robertson said.

“We know Kiwis are doing it tough in the face of cost of living pressures, but they do so while in paid work which helps ease some of that pressure that they are under. With many forecasters pointing to higher levels of unemployment the government will continue to support New Zealanders through this difficult time, including fuel tax cuts, half priced public transport fares and income increases for seniors, beneficiaries and those on Working for Families.

“As a new analysis out today highlights, those that promise uncosted and unfunded tax cuts that favour the wealthiest and landlords and leave working New Zealanders with little more than chump change will not help them deal with cost of living pressures,” Grant Robertson said.

“Today’s figures show a strong labour market is having a positive impact for women, Pacific, Māori and young people,” Carmel Sepuloni said.

“A particular highlight is the big growth in Pacific employment. In the September quarter over 28,000 Pacific people entered the workforce with 25,700 finding employment. Alongside this youth employment increased strongly, and the number of NEETs (Not in Employment, Education or Training) falling by 0.7 percent. The figures align with what we’re seeing in Jobseeker Work Ready numbers which continue to fall quarter on quarter.

“The Māori unemployment rate remains low with most Māori entering the workforce finding employment. It is clear that programmes such as Mana in Mahi, Flexiwage and Apprenticeship Boost are working and helping people move into long term sustainable employment.”

“Like other countries, New Zealand is experiencing worker shortages. We will continue to invest heavily in skills and training while attracting overseas workers with the skills we need. Our Immigration reset is making a difference, with more than 71,000 positions being approved to recruit overseas workers and help address workforce pressures,” Grant Robertson said.

On comparable measures, New Zealand’s 3.3 percent unemployment rate stands favourably against 3.5 percent in Australia and UK, 3.6 in the United States, and 5.2 percent in Canada. The OECD average is 4.9 percent.

“New Zealand is in a strong position as we continue to be buffeted by a challenging international environment and downwards projections for global growth. That will affect our prospects and economists are forecasting that unemployment will rise, though to levels that on average are below what has been experienced in the past.

“Our focus is on keeping the economy moving in the right direction. Despite a difficult global situation, we will continue to invest in creating the conditions to support people into work and drive higher wages for Kiwis. Our job is far from over, but we’re making progress,” Grant Robertson said.

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