11 February 2004 Media Statement
Labour market consolidating
An increase in full-time employment, a decrease in part-time employment and an increase in the total number of hours
worked has seen the labour market consolidate.
According to Statistics New Zealand’s Household Labour Force Survey for the December 2003 quarter the official
unemployment rate now stands at 4.6 percent (up 0.2 percentage points from the previous quarter, but down 0.3 percentage
points for the year). Full-time employment grew by 0.5 percent over the quarter, while part-time employment fell by 1.4
percent. The total number of people employed grew by 1,000 to 1,939,000 (or 176,000 more since the Labour-led government
was elected).
Social Development and Employment Minister Steve Maharey said it was clear that employment growth was consolidating
after strong growth in the September 2003 quarter.
“New Zealand has enjoyed very strong employment growth now for several years. Movements in this quarter from part to
full-time work and relatively stable ethnic, regional and industry-based employment growth point to a consolidation, but
continuation, of employment growth.
“Demand for labour remains very strong, as reflected in measures of skill and labour shortages. However, this demand was
met by an increase in hours worked, a significant shift from part-time to full-time employment and a reduction in
recorded underemployment to its lowest since 1990, rather than a move from unemployment into employment. Nevertheless in
the year to December 2003, the number of employed increased by 51,000 and the number of unemployed decreased by 4,000.
“However it’s clear that there continues to be a mismatch between job reductions (for example in manufacturing and
agriculture) and jobs created (for example in construction and the wholesale and retail sector). This reinforces the
importance of the government’s industry training strategy to upskill workers for the today’s labour market.
“Overall we are still expecting a solid year for employment, with job growth continuing through to mid year and a
possible softening towards the end of 2004,” Steve Maharey said.
ENDS