Unemployment in Bay lowest in 20 years

By REBECCA DEVINE in Rotorua
Bay of Plenty's unemployment rate has plummeted to become one of the lowest in the country - but Rotorua's high rates are stopping it from dropping even lower.

The latest figures released show the number of people out of work in the Bay of Plenty has dropped to 3.1 percent - the fourth lowest in the country.

It is the Bay's lowest unemployment rate in almost 20 years since the preset form of records began in 1986. Maori unemployment is also at the lowest it has ever been.

New Zealand has one of the lowest rates of unemployment in the OECD (Organisation for Economic Co-operation and Development) at 3.8 percent - which makes the Bay of Plenty's unemployment rate low on a worldwide scale.

News of the increasing number of people in work has come as great news for the region, which traditionally rates as the region with either the highest, or second highest, unemployment rate in the country.

The Bay of Plenty region covers a wide area, from Katikati in the north to Turangi in the south.

It goes across from Tokoroa through to Opotiki, and takes in some outlying areas such as Te Kaha.

While the low number of people on the dole is being seen as good news, it also indicates the skills shortage the region is facing - with some professions in desperate need of skilled workers.

Work and Income regional commissioner Carl Crafar said the result was a spectacular one for the region, although there were still pockets within the region that needed serious improvements.

"The Bay of Plenty region traditionally has a higher unemployment rate than the national average, therefore this drop in numbers is more noteworthy."

He said it was proof the department's proactive stance was working.

While the number of people receiving the unemployment benefit in Rotorua has dropped by almost 700 people from the same time last year, the city still has far more people on the dole than other places in the Bay of Plenty.

At September this year, 2030 people were receiving the benefit in Rotorua - about 45 percent of all those receiving it throughout the Bay of Plenty.

In Taupo, less that 100 people are receiving the dole and Tauranga's figures are also low.

Mr Crafar said the proportion of people in Rotorua on the benefit compared with Rotorua's percent of the population just did not add up. "Specifically in Rotorua we want to do better."

Nationally the number of Maori unemployed is also falling - although it still remains more than twice the national average at 8.3 percent.

Waiariki MP Mita Ririnui said the drop in Maori unemployment demonstrated the policies - which are focused on increasing skills and the ability to participate in the workforce - were working for Maori.

The falling unemployment rate is only being seen as good news, according to Rotorua's new mayor Kevin Winters.

He said the figures were "an extremely pleasing result that bodes well for our future".

When Mr Winters' predecessor Grahame Hall took office there was 22 percent unemployment in Rotorua and something the previous mayor wanted to do something about.

"It's a great parting legacy that by the time he ended his mayoralty it was down to this level.

"The Rotorua District Council will continue to work with WINZ to make sure students leaving school in Rotorua won't fall through the gaps. We want to track the progress of every school leaver until they are 20 years old to make sure they are either in work or education ... we want to get unemployment down to zero percent in Rotorua."