Jobless figures jump for Maori, Islanders
By JAMES WEIR and NZPA – BusinessDay.co.nz 06/08/10
Unemployment is hitting hardest among the young, Maori, and Pacific Islanders, and especially in the top half of the North Island.
It rose 19,000 in the June quarter to reach 159,000, a rise of 0.8 of a percentage point to 6.8 per cent, much higher than predicted.
Ministers said that, though worse, the figures were still an improvement on the 7.1 per cent figure at the end of last year.
Many economists cast doubt on the big drop in unemployment seen in the March quarter to 6 per cent, which was seen as “unbelievably strong” and hard to swallow after the recession.
The latest figures, while much worse than the forecast 6.2 per cent to 6.4 per cent, were more in line with a slow economic recovery.
While unemployment overall has increased to 6.8 per cent in the Household Labour Force Survey, Maori unemployment is up from 14.2 per cent to 16.4 per cent.
“That means 26,400 Maori are now without jobs – an increase of 3600 since the previous quarter,” Labour Maori affairs spokesman Parekura Horomia said.
“The situation actually is even worse because the unemployment rate is higher in places like the East Coast and the Far North.”
Community help groups say some of those out of work are finding it tough to pay the bills and put food on the table.
Citizens Advice Bureau spokeswoman Louise May said that, since the recession hit a couple of years ago, the organisation had seen more people, especially men, seeking help after being laid off.
Staff were seeing people with “high levels of stress” as a result of the recession, and that was also affecting family relationships, Ms May said.
In the past year more unemployed people were also seeking help for drinking, drug and gambling problems.
Labour, the Greens and unions are blaming the Government for the sharp rise in unemployment. Labour leader Phil Goff said the figures were a tragedy for those who had lost their jobs.
He said the Government did not have a plan to deal with the situation and further inaction would mean prolonged uncertainty over the jobs market.
Green Party co-leader Metiria Turei said the figures were a stark reminder that the Government’s policies were taking New Zealand in the wrong direction, and the Council of Trade Unions said there was a sense the economy was stalling.
“The figure of 6.8 per cent shows that the recession is not over for many,” CTU secretary Peter Conway said.
“The Government is far too complacent about this – jobs are at the heart of any economic recovery.”
He called on the Government to step up help for unemployed people by expanding employment programmes and bringing forward job-rich infrastructure spending.
Acting Prime Minister Gerry Brownlee said there was “no doubt the Government would express some disappointment with those numbers, but last December’s figure was 7.1 per cent – coming back to 6.8 per cent in that relatively short period of time is encouraging.”
REGIONAL UNEMPLOYMENT
The worst:
Northland: 9.1 per cent (9.1pc March quarter)
Auckland: 8.7 per cent (7.9pc March quarter)
Gisborne and Hawke’s Bay: 8.5 per cent (6.5pc March quarter)
Getting better:
Wellington: 5.5 per cent (5.7pc March quarter)
Taranaki: 4.9 per cent (5.1pc March quarter)
Manawatu/ Whanganui: 6.9pc (7pc March quarter)
Unemployment by ethnic group:
Pakeha: 4.4 per cent
Maori: 16.4 per cent
Pacific Island: 14.1 per cent
Asian: 10.5 per cent
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