Unemployment rate below six per cent

11:10 AM

Unemployment has fallen to its lowest level since 1988, according to figures released this morning.

The Household Labour Force Survey from Statistics New Zealand puts the unemployment rate for the September quarter at 5.9 per cent.

The last time the rate dipped below 6 per cent was in the June 1988 quarter when it was 5.2 per cent.

It reached a peak of 10.9 per cent in 1991.

Seasonally adjusted figures for the September 2000 quarter show the number of unemployed dropping by 3,000 and the number employed increasing by 22,000.

The labour market participation rate rose by 0.6 per cent to 65.5 per cent. The growth in employment was driven by an increase of 25,000 (1.8 per cent) in full-time employment. This rise in full-time employment is reflected in the quarterly 2.8 per cent increase in total actual hours worked for an average week.

The improvement in the labour market for the September 2000 quarter is also evident when compared with a year ago. The seasonally adjusted figures show unemployment has dropped by 16,000 (12.6 per cent), employment grew by 37,000 (2.1 per cent), the unemployment rate has fallen 0.9 percentage points and the labour force participation rate increased by 0.3 percentage points to 65.5 per cent.

Over the year all ethnic groups showed declines in their unemployment rates. The surveyed (unadjusted) unemployment rates for the September 2000 quarter were 4.2 per cent for European/Pakeha, 14.2 per cent for Mäori, 11.3 per cent for Pacific peoples and 8.0 per cent for the 'Other' ethnic group. This order has remained the same for most of the last three years.

Several industry groups had significant changes in surveyed (unadjusted) employment over the year. Employment increased in the Construction industry, the Accommodation, Cafes and Restaurants industry, and in Education (up 11,000). Employment fell by 13,400 in Agriculture, Forestry and Fishing over the year.

The region with the highest unadjusted unemployment rate in the September 2000 quarter was Northland (8.7 per cent), followed by Bay of Plenty (8.1 per cent). Tasman/Nelson/Marlborough/West Coast had the lowest unemployment rate of 4.6 per cent.

Herald Online feature: The jobs challenge

We invite your responses to a series of questions such as: what key policies would make it easier for unemployed people to move into and generate jobs?