A slight rise in unemployment figures is being pointed to by opposition parties as a sign of the government's failure to deal with economic issues, but Labour is defending the latest numbers.
Labour minister Carmel Sepuloni applauded today's job figures. Photo: RNZ / Samuel Rillstone
Stats NZ reported the jobless rate edged up to 3.3 percent in the three months ended June from 3.2 percent, against expectations of a fall.
The data also showed a rise in wage increases, with one index showing the highest rise since 2008.
Minister for Social Development and Employment Carmel Sepuloni applauded the figures.
"This is very positive and shows our economic plan is working," she said.
"Unemployment continues to be very low and firms are continuing to hire despite the uncertain global environment.
"Wages are rising to help with cost of living pressures while the government is doing its bit to support household incomes."
While the small rise in unemployment numbers was not expected, Sepuloni said the job market remains volatile.
"We recognise that unemployment is likely to move around in what has been a volatile and uncertain global environment."
National Party leader Christopher Luxon said wage growth was not meeting rising costs for everyone.
"We've seen new wage growth numbers at 3.4 percent, the cost of living crisis continues on.
"This government has presided over eight quarters - two years - of actually inflation outstripping wage growth which means that all Kiwis are going backwards across New Zealand."
National Party's Social Development and Employment spokeswoman Louise Upston said the low employment rate is also masking an explosion in in benefit dependency.
"Under Labour, 55 percent more people are on the Jobseeker benefit longer than one year.
"Low unemployment is only positive if more people have jobs and fewer people depend on benefits. But that's not what we're seeing under this government.
"If this government can't help people off benefits and into work now, then when on earth will they ever be able to?"
ACT leader David Seymour also said the figures were disappointing.
"Somehow Labour has managed to increase unemployment in the middle of an unprecedented labour crisis, while the Kiwis who are working are making less money.
"It's more evidence we need real change in our country's approach to economic management.
"We have a labour crisis in nearly every area of the economy, nurses, builders, fruit pickers, pilots, accountants. With the borders opening, Labour can't get more people in employment but they've managed to increase unemployment."
Inflation worries
Economist with the Council of Trade Unions Craig Renney said that while workers in construction and transport were getting higher wages, the tiny gains for clerical workers and those in the education sector were far outstripped by inflation, which was at the highest rate in 32 years.
"Unemployment remains low by international standards, but there may be more slack in the labour market due to the high number of people out of work with sickness. This has doubled in the past year.
"Wages are rising, but most workers are still behind inflation. With 190,000 Kiwis underemployed or unemployed, there is still plenty to do before we can claim that we are at full employment."
The government is sending out its first instalment of three $116 cost of living payments to many New Zealanders starting this week.
Renney said the job growth was not equal.
"The labour market continues to be experienced differently by different communities. Unemployment fell for men, Māori, and Pacific peoples, but rose for women."
Sepuloni said the government is working to meet shortages.
"We know that some sectors and businesses are facing worker shortages," she said.
"We are striking the right balance, investing heavily in skills and training through programmes like Mana in Mahi, Flexiwage and He Pou Rangatahi while making it simpler through our immigration reset to attract workers to get the skills we need.
"New Zealand is well positioned to respond to a challenging global situation dominated by high inflation, the ongoing pandemic and related supply chain disruptions.
"Our economy has come through the pandemic better than nearly anywhere in the world, with growth up 5.1 percent on a year ago and debt among the lowest in the OECD."