Stats NZ said on Wednesday that New Zealand’s unemployment rate in the June quarter – which includes the period the economy was in lockdown – was 4%, down from 4.2% in March. This compares to the Treasury’s Budget forecast for the unemployment rate to hit 8.3% in June. New Zealand’s 4% unemployment rate compares to 7.4% in Australia, 11.1% in the US and 12.3% in Canada. The OECD average is 8.4%.

In the June 2020 quarter:

• unemployment rate fell to 4.0 percent

• underutilisation rate rose to 12.0 percent

• hours worked fell a record 10.3 percent

• the number of people not in the labour force rose 37,000

• the number of employed people fell 11,000

• the wage subsidy scheme was in place from 17 March 2020.

Meanwhile, Finance Minister Grant Robertson commenting on the numbers said, “The unemployment numbers show the robustness of the economy. New Zealanders will notice in their communities that the economy is back up and running. However, we know there are still some tough times to come. The Treasury expects unemployment to rise further and peak in the September quarter as the impacts of the global recession caused by COVID-19 feed through to the domestic economy. Many countries are now experiencing second waves, which will lead to a deeper global recession.”

“While the number of people in employment fell by only 0.5% during the quarter and was up 1.2% from a year ago, the increase in the underutilisation rate, and number people indicating they had stopped looking for work due to COVID-19 does show the impact this global pandemic is having. That’s why we put a comprehensive economic plan in place at Budget 2020 focussed on jobs.”

As part of the economic plan announced at Budget 2020, the Government made significant investments to support New Zealanders into jobs, including:

• Free trades training to help get New Zealanders into work

• Providing businesses with up to $16,000 to help cover the costs of an apprentice’s first two years

• Boosts to He Poutama Rangatahi, Mana in Mahi, Trades Academies, Careers advice and the Maori Apprenticeships Fund

• Significant new infrastructure investment, including for 8,000 new state homes and regional infrastructure projects to support the construction industry around the country

• Support for SMEs to receive up to $5,000 for business advice and support to help them shift into e-commerce.

– TIN Bureau