Posted on 21st November 2018 by Russell Phillips
The seasonally adjusted unemployment rate fell below 4% in the September 2018 quarter to 3.9% Stats NZ said today.
This is down from 4.4 percent last quarter and is the lowest unemployment rate since the June 2008 quarter, when it was 3.8 percent.
Automotive Employment NZ recorded New Zealand’s historical low of just 3.4% in 2004, it now seems New Zealand is well on track to better the world’s lowest unemployment once again. At the time Social Development Minister, Steve Maharey commented, “Reaching a world-leading 3.4 percent unemployment rate is proof of the economic and social strength of 21st century New Zealand”
New Zealand’s impressive unemployment record in graphically demonstrated below. Largely unemployment has remained low and even during the Global Financial Crisis unemployment remained low.
The fall in the unemployment rate in the latest quarter reflected a fall in the number of unemployed people (down 13,000) and a strong rise in employment (up 29,000). This quarter’s employment rate rose to 68.3 percent, the highest rate since the series began more than 30 years ago.
The fall in unemployment, in tandem with a fall in underemployment, was key to the underutilization rate falling to 11.3 percent.
“While this quarter’s unemployment rate is outside market expectations, we know New Zealand has a small economy with a dynamic labor market, and large changes, both up and down, have happened before – in late 2012 and 2015,” labor market and household statistics senior manager Jason Attewell said.
“We also know labor market measures tend to lag behind other economic indicators, which have shown strong and widespread growth in 2018. We’ve seen population growth in the regions, reports of more job ads, high levels of migration and tourism, growing retail sales, and rising exports.”