Unemployment figures highlight “vulnerable” economy

Figures released today revealing a rise in the unemployment rate demonstrate that the government’s mismanagement of the economy is keeping the country in a low-wage, high unemployment rut says FIRST Union General Secretary Robert Reid.

“Under this government New Zealand has been a low-wage economy characterised by high levels of unemployment. The Labour Cost Index is only up a modest 1.6 percent while unemployment has risen to 5.9 percent.”

“We are now sitting in a vulnerable position. The government’s job strategy relied on the Christchurch rebuild while their export strategy relied on high dairy prices, but now rebuild activity is slowing and dairy prices are crashing,” says Reid.

“There doesn’t appear to be a back-up plan.”

“The government is now relying on high house prices to maintain business and consumer confidence, but that doesn’t amount to an economic strategy,” says Reid.

ENDS

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