Increase in dole numbers lower than expected

Unemployment benefit numbers rose to 60,106. Photo / Dean Purcell

Unemployment benefit numbers rose slightly last month for the first time since January as winter's imminent arrival brought much seasonal work to an end.

Social Development Minister Paula Bennett said the numbers rose by 391 to 60,106.

Sickness benefit numbers jumped even more, by 729, domestic purposes beneficiaries rose by 342, and the total on all main benefits rose by 1887 to 329,349 - still about one in every eight New Zealanders of working age.

Ms Bennett said the numbers were below forecasts. Treasury forecasts used for last month's Budget had unemployment benefits continuing to climb to 79,000 in the year to next June and 80,000 in the following year.

"With seasonal work winding up, we expected a slight increase in unemployment benefit figures, but it is much lower and has occurred later than it did last year," she said.

The numbers increased from 37,100 to 50,900 when the recession hit from March to June last year.

The jobs website Seek reported declines in jobs advertised last month of 2.3 per cent in Auckland and 4.8 per cent in Christchurch, offset by a 3.6 per cent increase in Wellington.

Yesterday, the Labour Department reported an 8.2 per cent increase in skilled jobs advertised nationally in the three months to the end of May, only a marginal slowdown from the peak growth of 8.5 per cent in the three months to April.

"Job advertisements have increased every month since June 2009, when they were at their lowest point - skilled vacancies by 26.6 per cent and total vacancies by 29.7 per cent," the department said.

Unlike the Seek data, the Labour Department found growth of 8.6 per cent in advertised jobs in Auckland in the past three months, and 11.3 per cent growth in Wellington. Only Christchurch jobs dropped, by 1 per cent.