Unemployment drop good news for Tasman

The unemployment rate in Tasman district dived to an annual average of just 2.3 per cent in year to March, down from an already low 3.2 per cent the year earlier.

That tightening labour market coincided with strong economic growth. The district’s Gross Domestic Product (GDP) was up 4.3 per cent compared with a year earlier.

Nationally, GDP growth was 2.7 per cent while the average annual unemployment rate for the country was 4.6 per cent.

The figures were contained in the first quarterly economic report for the Tasman district by economic consultancy Infometrics, which was engaged by the Nelson Regional Development Agency.

Infometrics’ findings were presented this week to the Tasman District Council community development committee.

Residential building consents in Tasman district climbed 6.9 per cent over the same 12-month period. Retail and tourism spending were also higher; the latter jumped to about $321 million for the year to March, from $288m a year earlier.

There were more vehicle movements on the district’s roads with traffic flows up by 8.6 per cent, compared with a 2 per cent increase nationally.

The average house value in Tasman district rose 9.8 per cent in the year, outperforming growth of 9.5 per cent nationally. However, that average value was lower at $546,337 in Tasman district compared with $659,904 nationally.

When she presented the report, council senior policy adviser Brylee Wayman said the unemployment rate of 2.3 per cent was close to the 10-year low for the district, which was 2.2 per cent.

‘‘This indicates a bit of a tightening in our labour market but that’s also the case nationally as well,’’ Wayman said.

Infometrics says that nationally, companies will need to compete to retain workers and are likely to experience difficulty searching for new employees.

Tasman district this year had too few workers in the horticulture industry.

Motueka Fruit Growers Association chairman Simon Easton in March said there was ‘‘virtually noone’’ keen to work the picking season.

On April 5, the Ministry of Social Development declared a seasonal labour shortage across the area. By declaring a labour shortage, from April 5 to May 18, it meant people from overseas with visitor visas could apply for a variation of conditions allowing them to work through the declaration period.

Regional labour market manager Lynne Williams said several factors led to the declaration including bumper crops, low unemployment and the fallout from ex-cyclones Fehi and Gita affecting visitor numbers to the district and causing damage to the accommodation at some orchards.

The Infometrics’ findings show an overall gain of 173 new residents from overseas in the year to March, down from 209 a year earlier.

International net migration has been a key component of Tasman district’s higher population growth in recent years.

Golden Bay Ward councillor Sue Brown said she was pleasantly surprised to note guest nights had ‘‘only gone down 2.4 per cent’’ considering the timing of ex-Tropical Cyclone Gita, which hit the district on February 20.

Heavy rain caused slips that led to the temporary closure of Takaka Hill, a major gateway to Golden Bay.