Wellington Scoop

CofC predicts more jobs in Wellington, in spite of rise in NZ unemployment

Press Release – Wellington Regional Chamber of Commerce
While unemployment continues to rise, the outlook for the Wellington labour market shows some promise according to the Wellington Regional Chamber of Commerce.

“The Chamber’s latest businesses confidence survey showed increased numbers of Wellington employers are expecting to take on new staff,” said Chamber CEO, Charles Finny.

“26% of respondents expected an increase in full time employees in the next three months against 11% expecting a reduction. The majority are expecting no change.

“In spite of the increasing unemployment rate, many Wellington businesses are still citing ‘staff shortages’ and ‘difficulty to recruit and retain’ as their key concerns.

“While not so accurate at the regional level, today’s Household Labour Force Survey data shows that the Wellington labour market is faring better than the country as a whole with a 6.3% unemployment rate (compared with the non-seasonally adjusted, New Zealand-wide figure of 6.8%).

“While some sectors are less optimistic than others and some uncertainty exists as decisions are made in the government sector, there is a core of businesses looking to expand which is encouraging for the regional economy,” Mr Finny concluded.

Businesswire article by Jonathan Underhill
New Zealand’s unemployment rate surged more than expected in the fourth quarter to the highest in more than a decade, stoking speculation the central bank won’t rush to raise interest rates. The kiwi dollar tumbled and the two-year swap rate dropped.

The jobless rate rose to 7.3%, from 6.5% three months earlier, according to Statistics New Zealand. Economists had expected a rate of 6.8%, according to a Reuters survey. The participation rate edged up to 68.1% from 68%.

Unemployment topped the central bank’s estimate of 6.6%, giving investors cause to think Governor Alan Bollard is more likely to wait until June to raise the official cash rate from a record low 2.5%. The New Zealand dollar sank to 70.17 U.S. cents from 70.71 cents immediately before the figures were released. Two-year swaps fell to 4.29% from 4.37.

“The middle of the year could now be more like June than April,” said Keith Poore, who oversees $4 billion as head of investment strategy at AXA Global Investors in Wellington. “The plan is still to raise interest rates but maybe not in such big, meaty chunks.”

The number of people unemployed rose by 18,000 to 168,000 in the fourth quarter, the highest since June 1993. Employment fell by 0.1%, seasonally adjusted, to 2.15 million, and was down 2.4% in the year.

In annual terms, employment fell in manufacturing, retailing, accommodation, the arts, recreation and other services industries, the government statistician said. Employment in health care and social assistance rose.

1 comment:

  1. Allan Probert, 11. February 2010, 7:30

    Not seeing this in the small and medium business section of the economy so struggle to see where they get their info from….I am hearing increased debts; no cashflow; low public demand and increased unemployment and lack of bank support along with the tightening of credit by suppliers.