Beating unemployment is something to celebrate. Photo / Warren Buckland
OPINION:
It appears, to my ageing eyes, that there are many things making life in 2021 tough for young people.
Thankfully getting a job doesn't seem to be one of them.
Low unemployment is a big deal and for all the current concern about inflation we shouldn't forget to stopand celebrate last week's extremely strong labour market data.
I don't think we should confuse serious labour shortages limiting business growth with the need to make sure all Kiwis have a job.
The shortage of workers is very much a symptom of the pandemic and the border closures.
I have argued that the Government should be moving with more urgency to address the issue within those tight constraints that a safe pandemic response allows.
In the past week we've seen a move to more horticultural workers from the Pacific Islands. I suspect we'll also see it respond to growing calls to offer some amnesty to workers trapped here with expired visas.
With unemployment so low, it is a luxury the Government can now afford.
Another low-unemployment bonus for the Government is that it means paying out less in benefits and getting back more in tax.
The Crown accounts are already looking much better than Treasury forecasts.
Lower unemployment will super-charge that.
On Friday, BNZ head of research Stephen Toplis noted: "Given the current run rate it looks like the Government's accounts could be in surplus by June 2024."
Of course, the best bit about a low unemployment is it means fewer Kiwis are having their lives torn apart by the grim reality of life without a job.
For many New Zealanders, the era of high unemployment, from the late 1980s to the late 1990s, was devastating.