June quarter shows strong rebound in labour market

07 August 2008

Today’s Household Labour Force Survey for the June 2008 quarter showed a strong rebound in some of the key labour market indicators the Department of Labour monitors.

The results show the overall robust nature of New Zealand employment. The increase in unemployment has occurred in an environment of significant skill shortage. While some people may get laid off, there is strong demand for additional workers.

The survey results released today show employment and labour force participation have risen to near record levels after falling sharply in the previous quarter. Much of the rise in employment is due to increased employment of women, reversing the decline seen in the last quarter. The fluctuation of female employment may be interpreted as a positive characteristic. It appears that there is significant opportunity for women to enter and leave employment as desired, a sign of a well-functioning labour market.

The labour market has shown resilience in the difficult economic environment facing New Zealand in the first half of 2008. While the increase in unemployment was expected, New Zealand continues to have the sixth lowest unemployment rates in the OECD.

The New Zealand labour market remains tight on an historic and international basis, despite some softening in the first half of 2008. As a result, wage growth has continued at a fast pace and skill shortages are ongoing in many areas of our economy. Shortage of staff will help workers move from firms and industries that are struggling, for example from residential construction.

Unemployment has risen but remains low across the country. The unemployment rate was below five per cent in all 12 regions in the year to June 2008 (and was below 4.5 per cent in all regions in the June 2008 quarter alone).

The Department of Labour and Ministry of Social Development publish a quarterly series of regional labour marker reports based on the Household Labour Force Survey. They are on the Department’s website at http://dol.govt.nz//lmr/regional/joint

The Department’s recently published Annual In-Depth Regional reports (AIDR) are a set of 12 regional labour market reports with a specific focus on youth. They can be found at http://dol.govt.nz/lmr/regional/indepth

For more information contact Iain MacLean, Department of Labour, on 04 915 4458 or 027 420 3056