Unemployment rate tumbles

Tough job-seeking conditions and discourteous employers are making life difficult for Wairarapa's unemployed, a local budgeting adviser says.

Wairarapa Free Budget Advisory service manager Grant Howard said many of his jobless clients became "disheartened" during the job-seeking process.

His comments follow a new Statistics New Zealand labour market report which estimated 20,100 residents in the Wellington region - which includes Wairarapa - were out of work in the three months to March.

Latest figures from the Household Labour Force Survey show unemployment stood at 6.8 per cent during the period in the Wellington region, down from 7.9 per cent in the previous quarter, and 6.2 per cent a year ago.

Reliable figures specific to Wairarapa were unavailable.

"Most people want to work but jobs in the Wairarapa were thin," Mr Howard said.

Employers often refused to respond to unsuccessful applicants, leaving job hunters feeling disheartened, he said.

A breakdown of the figures show a higher proportion of Wellington region residents were eligible for work and in jobs in the March quarter. Of the 296,200 residents aged 15 and over eligible for work, 276,100 were employed. In the three months to December, the Wellington region labour force stood at 285,200 with 262,600 people in jobs.

Despite the drop in unemployment, figures from the Social Development Ministry show the number of Wairarapa dole recipients edged higher in the last year. In March, 575 people were claiming the unemployment benefit, compared to 564 a year ago.

Nationally, unemployment fell to a three-year low for the first quarter of this year - with 38,000 more people in jobs compared to the previous period.

The jobless rate was 6.2 per cent, down from a revised 6.8 per cent in the December quarter, and 6.7 per cent a year ago.

Despite this, 148,000 New Zealanders were still out-of-work in the three months to March.

Northland had the country's highest unemployment rate with 10 per cent of the region's eligible workers unemployed.

Council of Trade Unions said the drop in unemployment was encouraging.

However, more needed to be done for struggling Kiwis.

"There is no cause for satisfaction when there are [at least] 146,000 people unemployed and a further 83,300 part-time workers looking for extra hours," secretary Peter Conway said.

Despite this, Westpac Bank economist Dominick Stephens said the survey results "gave an unusually clear signal that the labour market has improved".

He said labour markets outside quake-affected Canterbury had also shown improvements.

Tertiary Education, Skills and Employment Minister Steven Joyce said the reduced unemployment rate reflected growth in the economy.

"While the fall in unemployment is a good result, it may be a little too good as this survey is known to move around and we need to be cautious."

By the numbers

First three months of 2013: 6.8 per cent unemployment rate.

20,100 Wellington region residents unemployed.

296,200 residents aged 15 and over eligible for work - 276,100 employed.

APNZ & Business Desk