The government claims its efforts to secure the recovery has seen more Kiwis in jobs and higher wages, with unemployment falling to pre-COVID levels and more people in work.

Stats NZ figures show the unemployment rate fell to 4% in the June quarter from 4.6% in the March quarter, the lowest rate since December 2019. 

This compares with The Treasury’s Half year Economic and Fiscal Update forecast unemployment rate of 5.2%.

Employment rose by 28,000 in the quarter, and the total number of people in work is now 63,000 above where it was in the December 2019 quarter before COVID.

The average hourly wage rose 4% to $34.76 an hour, compared with a 3.3% rise in inflation, meaning more money in New Zealander’s back pockets.

“This positive result shows the Government’s plan is delivering, giving households and businesses the confidence to spend and invest and accelerate the recovery,” Minister of Finance Grant Robertson says. 

“An extra 63,000 people are in jobs since September 2020, when unemployment peaked at 5.2%. 

“Our focus remains on accelerating the recovery and dealing with the challenges that a fast growing economy brings. 

“Our vaccination programme is ramping up and we’ll have more to say on reconnecting to the rest of the work soon, which will provide further confidence to business as they plan ahead.

“Our critical worker scheme has seen 17,000 people enter New Zealand to support businesses and other organisations to keep the economy moving. 

“We will continue to work with businesses on opportunities to expand the number of people we can bring in to support our recovering economy. We also continue to invest heavily in education, skills and training to build back better.

“The ongoing impact of the pandemic is likely to see unemployment move around a bit,” Grant Robertson says. 

“Nevertheless, New Zealand has performed favourably against the countries we measure ourselves against.

“On comparable measures, New Zealand’s 4% unemployment rate stands against 5.2% in Australia, 5.9% in the United States and 8% in Canada. The OECD average is 6.6%.”

Meanwhile, in response, the New Zealand National Party claims the latest labour market statistics confirms wages have “only increased 2.1% compared to 3.3% annual inflation”.

National’s Shadow Treasurer Andrew Bayly says New Zealanders’ pay packets are being “eaten up by the rising cost of living”.

“The improving employment figures are welcome news, but Kiwis are getting poorer,” he says.

“Wage growth of 2.1% means the cost of living is going up faster than increases in wages, so real wage growth is actually negative.

“In short, Kiwis are now getting poorer with each pay packet.”

Andrew Bayly says the recent Productivity Commission report showed New Zealanders were working harder and putting in longer hours than their counterparts in other developed countries.

“But it’s not a good sign for an economy when they are worker longer and harder but are effectively becoming poorer for it.

“Increasing the minimum wage rate is all well and good, but if the Government is serious about increasing incomes, then it also needs to stop fuelling rises the cost of living through increased fuel and car taxes and housing tax policies that drive up rents.

“Renting families have seen weekly rents increase $40 in just the last 12 months. As the Government has been unable to get the skilled workers that growers and businesses need, the cost of fruit and vegetables has increased 6% in the last 12 months and the cost of a meal out has increased 4%.

“And if the Government wants employers to be able to reward workers more, then it needs to pull back from loading costs onto businesses and think about how to facilitate the ability of businesses to grow.

“Around the country I am hearing business owners frustrated at how they’re being held back, particularly by a lack of skilled workers.”

Government Minister for Social Development and Employment Carmel Sepuloni says the stronger labour market saw “another large number of people come off the benefit in the June quarter, with over 31,000 entering paid work”.

“Our programmes to assist those who are disadvantaged in the labour market to re-enter the workforce are making a difference,” Carmel Sepuloni says.

Flexiwage has seen 4,782 people placed into employment, while Apprenticeship Boost has supported over 31,000 into a trade.

“Today’s figures also show a drop in Māori and Pacific unemployment by 1% and 1.6% respectively, as well as a significant drop in the numbers of young people Not in Education, Employment or Training.

“While today’s figures are positive and shows our plan is working, we know we have more work to do,” Carmel Sepuloni says.