Still Too Many Unemployed - CTU
The Council of Trade Unions has welcomed the fall in unemployment below 5%. This indicates a high demand for labour and
continuing growth in employment.
“Although a reduction in those on the overall workforce is one explanation for the sharp fall in the unemployment rate,
it is a good sign that unemployment has fallen below 5%,” said the CTU economist Peter Conway today.
Peter Conway said the fall also showed that Government policies such as increasing the minimum wage are compatible with
falling unemployment.
“But 98,000 people unemployed is far too many given the strong demand for workers,” he said.
“While in a dynamic labour market there is some unemployment as people move between jobs, there is clearly a
contradiction when we have employers calling out for workers, but there are still nearly 100,000 out of work.”
Peter Conway said the answer lies partly in much better targeting of the training needs for the unemployed, and more
assistance in the transition to work.
In addition, there is also a significant issue when Maori unemployment, although falling, remains more than three times
the rate for Pakeha workers.