The latest economic snapshot of Taranaki shows the province - which last year boasted the highest per capita GDP in the country ($76,715) - has not been left unscathed by the cost of living crisis.
The production of food, including honey and dairy products, is a major element in Taranaki's economy. Photo:
Taranaki Trends Winter Edition data reveals since March 2021, the province has experienced the largest growth in median weekly rents in the country - up 18 percent to $530 a week, in line with average mortgage costs.
Food prices have also spiked 8 percent compared with the same period last year.
Wages rose by 3 percent in the March quarter, the highest level since the comparable period in 2009, however, that was well below the Consumer Price Index of 6.9 percent.
Meanwhile, the Taranaki unemployment rate is at a record low, at 2.4 percent, and the region now has the lowest unemployment rate in New Zealand.
Venture Taranaki launched the six-monthly report this afternoon.
Keynote speaker ANZ chief economist Sharon Zollner told invited guests the rising cost of living was not a phenomenon unique to Taranaki.
"New Zealand is going through a challenging period, with high inflation, increased living costs and a runaway housing market, compounded by supply constraints and talent shortages, caused in part by Covid-19 restrictions. New Zealand and Taranaki are not alone with these challenges, these trends are echoed across the globe."
Venture Taranaki chief executive Kelvin Wright said the latest data came as no surprise.
"As we make our food and fuel purchases and pay our rent or mortgage, no one can escape the brunt of increased living costs. The Taranaki region maintains its relatively affordable status compared with the other big centres, but that is little comfort for those struggling with increasing costs across the board."
New Plymouth in Taranaki. A new report suggests the region remains more affordable than most parts of the country but costs are rising across the board. Photo:
Wright said wage rises had not been comparable with cost of living increases which significantly impacted families and added additional financial pressures for people trying to pay rent and put food on the table.
"We acknowledge times are tough not just for Taranaki but across the motu, but there are some pockets of positive news to share, such as the Taranaki unemployment rate being at a record low, sitting at 2.4 percent."
Wright said, however, the flip side of having the lowest unemployment rate in the country was a constrained labour market and large skills and talent shortages across the board.
In March 2022, 54,323 jobs were filled in Taranaki, with 49 percent of workers female and 51 percent male.
The research found job numbers had been steadily growing in Taranaki from 2020 to 2022, a trend that was expected to continue in the coming months based on forecast growth in key sectors, increasing demand for talent, and reopening borders to migrant workers.
Full border reopening awaited
Kelvin Wright Photo: RNZ / Robin Martin
Wright said the region took heart from the recent announcement that New Zealand's border would be fully open from the end of July.
"We look forward to welcoming back international visitors, cruise ships, and highly skilled migrant workers.
"The border closure has been a major challenge for many sectors and enterprises within the region, however, come July, these pressures will be relieved somewhat, and the Taranaki and New Zealand economy can focus on attracting and retaining the skills and talent required to transition to a low-emissions, high value economy."
Food and beverage production, alongside farming, were recognised as significant growth opportunities in the report, after contributing $1.7 billion GDP to the Taranaki economy in 2021.
"Taranaki is renowned for our food production and farming, and the industry employs 10,000 people around the maunga," Wright said.
"Our food and fibre industry are at a pivotal time where they can leverage their existing capabilities, natural resources, and entrepreneurial spirit to explore and advance a range of value-added food and fibre opportunities to strengthen and diversify the Taranaki economy."