HLFS shows encouraging job growth

The drop in the unemployment rate from 6.9 per cent to 6.2 per cent in the March quarter is encouraging news, Tertiary Education, Skills and Employment Minister Steven Joyce says.

The Household Labour Force Survey released today showed that 38,000 more people were employed in the quarter.

“The result follows news the economy grew 3 per cent in the year to December and is another sign the economy is continuing to head in the right direction,” Mr Joyce says.

“While the fall in unemployment is a good result it may be a little too good as this survey is known to move around and we need to be cautious.”

The result puts New Zealand in 11th place in the OECD, which has an average unemployment rate of 8 per cent. Our participation rate grew from 67.2 to 67.8 per cent and remains higher than Australia’s at 65.3 per cent.

Hours worked increased 3.2 per cent for the quarter – the highest since 1994.

“The Government’s economic management and Business Growth Agenda were praised last month by IMF Managing Director Christine Lagarde who described the New Zealand economy as being ‘very stable’ and ‘very promising’ and a lot better than other parts of the world,” Mr Joyce says.

“The National-led Government is encouraging more investment right across the New Zealand economy as we know that nothing creates jobs and grows incomes for New Zealand families better than business growth.”

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