Unemployment rate 3.6 per cent

The seasonally adjusted unemployment rate was 3.6 per cent in the December quarter, according to Statistics New Zealand's (SNZ) household labour force survey published today.

There was confusion about whether it represented a rise or fall.

The September quarter figure was first published as 3.4 per cent -- the lowest on record since SNZ began the series in 1986 -- but that was revised to 3.7 per cent today.

New Zealand had boasted of having the lowest unemployment rate in the world based on the earlier figures.

SNZ has began compiling its survey returns using "computer assisted interviewing", rather than by hand and that has accounted for much of the revision.

The September quarter was based on just seven eighths of the sample.

The one eighth that was not included was found to be "statistically significant" in terms of the number of unemployed, SNZ's Richard Cottam said.

"The 3.4 per cent figure was a valid figure based on the sample size," he said.

Asked if people could trust the data, he said: "Absolutely."

The one eighth group was not included because of time constraints.

Today's figures showed that unemployment dropped 1.9 per cent in the quarter to 78,000 but was 0.7 per cent above a year ago.

Employment fell 0.1 per cent from September quarter to 2.085 million but was 1.5 per cent above the December 2004 quarter.

The reversal of the trend in recent quarters in job growth will please Reserve Bank governor Alan Bollard who will be looking for an easing in the tight job market.

The labour force participation rate fell 0.3 per cent to 67.8 per cent.

SNZ said there were signs of an easing in the labour market, with the slight decrease in the number of people employed.

Employment of males increased by 0.5 per cent over the quarter but female employment fell 0.7 per cent.

Full-time employment fell by 9000 and part-time employment rose by 11,000. Increasing number of part-time jobs is usually a sign of a slowing or sluggish economy.

Total actual hours worked fell by 1.5 per cent in line with the decrease in full-time employment.

The working population increased by 12,500 in the quarter. The number of people not in the work force increased by 1.1 per cent, absorbing all of the increase in the working age population.

Unadjusted unemployment rates in the December quarter stood at 7.6 per cent for Maori, 6.2 per cent for Pacific peoples, 5.8 per cent for the other ethnic group and 2.5 per cent for Pakeha.

Maori unemployment was 9.4 per cent in the September and Pacific Peoples unemployment was 5.7 per cent in the quarter.

- NZPA