Low unemployment rate reflected in Whanganui with current staff shortages

Whanganui & Partners chief executive Hannah Middleton said hiring and retaining skilled workers would become more challenging with a strong labour market and low unemployment rate. Photo / Bevan Conley

Continued low unemployment across the country is hitting Whanganui businesses struggling to fill staff shortages, the local economic development agency says.

Data from Stats NZ showed the unemployment rate was 3.3 per cent in the June 2022 quarter, up from the record low 3.2 per cent in the last quarter.

The figure was reflected in Whanganui, as the Ministry of Social Development (MSD) said it helped many people come off main benefits and into work.

Gloria Campbell, MSD regional commissioner for Taranaki, King Country, Whanganui, said 84 people in the Whanganui area came off main benefits and into work in June.

In May this number was 87, and 87 again in April, Campbell said.

"We know most people want to work, and with the right support, they can," Campbell said.

"Providing that support is a key focus for us," she said.

Between May 2021 and June 2022, 1689 benefit payments were cancelled because people in the Whanganui District Council region secured employment.

From May to the end of June 2022, 10 people in Whanganui secured employment in building & construction through Mana in Mahi subsidies, which support trades training.

In the same period, 49 people were employed in meat processing across a range of regional employers.

Whanganui & Partners chief executive Hannah Middleton said many employers were finding it harder to get the staff they need, which was reflected in the low unemployment rate.

"Hiring and retaining skilled workers becomes more challenging as local businesses grow and work to meet demand, particularly with such a strong labour market and low unemployment rate," Middleton said.

Whanganui & Partners tracks growth in income and saw favourable earnings growth and housing affordability figures for Whanganui at the end of 2021, she said.

Whanganui had an average annual earnings growth of 3.6 per cent at the end of 2021, compared to New Zealand's average of 2.6 per cent.

Average household income rose 4.8 per cent in Whanganui and per capita income (which accounts for all sources of household income as well as household size) was up 2.2 per cent.

"With border restrictions easing, it's good to have an attractive lifestyle and earnings potential for new workers," Middleton said.

Despite a rise in median house prices over the last couple of years, housing affordability in Whanganui was 6.5 on the organisation's index, which compares very well to the national figure of 8.8.

A higher ratio suggests that median houses cost a greater multiple of typical incomes, which indicates lower housing affordability.

The Stats NZ release also showed the underutilisation rate was 9.2 per cent, compared with 9.3 per cent last quarter.

The data also showed salary and wage rates increased by 3.4 per cent, the highest since 2008, but still well below the 7.3 per cent annual inflation figure released last month.

The average ordinary time hourly earnings have risen 6.4 per cent to $36.97.

The statistics also showed a significant drop in the Māori unemployment rate.

Annually, the unemployment rate (not seasonally adjusted) for Māori fell to 5.5 per cent, from 7.8 per cent.