Jobless rate rises faster than picked

Unemployment jumped at the end of 2018, as the number of new jobs being created slowed.

Statistics New Zealand said yesterday that unemployment climbed to 4.3 per cent in December, up from a revised 4 per cent in September.

When the September figures were originally announced, the department had estimated unemployment had dropped to 3.9 per cent, which was the lowest level in a decade. The news was celebrated by the Government.

The New Zealand dollar dropped on the latest figures, as the market bets on whether the figures make an interest rate cut from the Reserve Bank more likely.

Most of the climb in the number of unemployed – which rose by 10,000 to 120,000 – was due to unemployed men.

The number of men unemployed rose by 8000 to 65,000, while the number of unemployed women rose by 2000 to 55,000.

For the first time since 2010, men (4.4 per cent) are now more likely to be unemployed than women (4.2 per cent), Statistics NZ said.

Economists had expected a small increase in the unemployment rate, after a sharp drop in September, but not to the degree the household labour force survey revealed.

ANZ, which had forecast that the unemployment rate would climb to 4.1 per cent, said the overall picture was softer than expected.

‘‘It looks like the best that the labour market has to offer is behind us,’’ ANZ senior economist Liz Kendall said.

Employment Minister Willie Jackson focused on lower unemployment for women and Ma¯ ori since the coalition Government took office.

‘‘The results released are in keeping with our expectations for this quarter and we are confident that in this strong economy, if we continue to listen to employers and work with industry, many people looking for work will find more opportunities to do so,’’ he said.

National’s finance spokeswoman Amy Adams said the figures suggest the economy may be slowing and the Government should take it as a ‘‘reality check’’, with the number unemployed climbing, while those not in employment, education or training rising by 26,000.

‘‘If this trend continues, it is a bad look for a Government that claims to be doing more to ‘get the nephs off the couch’ and suggests it is failing to deliver on key promises,’’ Adams said.