Unemployment down to 4%

Unemployment fell at the end of 2019, driven by 3000 fewer unemployed women.

Statistics NZ said yesterday the unemployment rate was 4 per cent in the December 2019 quarter, down from 4.1 per cent last quarter. The unemployment rate for women dropped to 4.3 per cent in the December 2019 quarter, down from 4.5 per cent last quarter. For men, it was unchanged at 3.8 per cent.

‘‘The unemployment rate has largely been tracking down since late 2012 but has remained stable at around 4 per cent throughout 2019,’’ Statistics NZ’s Sean Broughton said. However, employment grew only 1 per cent in 2019 and fell by 0.3 per cent in the December quarter.

Finance Minister Grant Robertson said the Government could take credit for the strong economy, due to its investments in infrastructure, focus on lifting wages and regional investments.

Unemployment was at 4.7 per cent when Labour came to Government,

he said. ‘‘We have seen the lowest levels in a decade in the past two years.’’

The number of Maori in employment rose by 4900 in the quarter to 322,600, the highest number on record.

Employment Minister Willie Jackson said this was due to the Government’s focused support

for Maori employment through boosting skills.

But Westpac senior economist Michael Gordon said that while the result was stronger than the markets and Reserve Bank expected, the details were ‘‘less suggestive of a strong economy’’ due to the flat quarter and the fall in the participation rate.

‘‘The fall in the unemployment rate was largely due to more people leaving the workforce.’’

Labour force participation fell in the December quarter by 18,000 to reach 1,177,000. Kiwibank chief economist Jarrod Kerr commented: ‘‘That is not good’’.

The report was consistent with the Reserve Bank’s maximum sustainable employment mandate, he said.

However, Gordon said there was a consistent message that the labour market was getting tight.

The biggest shift came in the rate of under-utilisation, which fell to an 11-year low, at 10 per cent. Under-utilised people include people who are employed but wish to work more hours, those available who are not looking, or those looking but not available for the next month, Broughton said.

The under-utilisation rate was again driven by women, with the men’s rate unchanged. For women it fell to 11.8 per cent from 12.6 per cent last quarter. This was the lowest under-utilisation rate for women since the June 2008 quarter, when it was 11.6 per cent, reflecting 12,000 fewer women who were under-utilised.

‘‘The unemployment rate has largely been tracking down since late 2012.’’

Sean Broughton Statistics NZ