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Posts Tagged ‘Social Development Minister’

Jobs up, jobless down?

7 October 2011 4 comments

Two articles in the Dominion Post today (7 October) seem to suggest that unemployment was on it’s way down and that the country was witnessing a growth in jobs,

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The article states that “more than 4000 people came off the unemployment benefit and more than 2200 youths came off welfare, including 351 youths who came the unemployment benefit.”

However, the article continues with this,  “Bennett said the total number of people on welfare remained high, rising by 0.1 per cent in September to 328,496.”

So, the reality is that a certain number of those 4,000 people who   “ came off the unemployment benefit ”   may well have moved on to another benefit? Because that is what Bennett is saying, quite clearly,  ” the total number of people on welfare … [rose] by 0.1 per cent in September to 328,496 “.

The article also does not state where those 2200 youths who “came off welfare  ” went. Did they find employment? Is is full time or part time – and if the latter, are their wages still being subsidised by WINZ? Have they move “side ways” onto another benefit? Are they in training/education, or one of WINZ’s many, ultimately-futile “training” programmes?

The story simply does not enlighten us.

Paula Bennett’s comment here may be somewhat less-than-helpful,

Job hunting isn’t easy, but it’s fair to say that if you’re not looking, you won’t find a job…”

Thank you, Paula, you’re a real fountain of wisdom.

The second Dominion Post article is also vague and contradictory,

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The article states “SEEK Employment Index rose half a per cent in the last month, showing the new jobs listed on the employment website have grown faster than job applications.”

But then continues with “when seasonally adjusted, the index actually fell by 1.1 per cent in September…”.

It also seems bizarre to read that, “The five most sought category of employees in September were accounting, government and defence, healthcare and medical; engineering and automotive trades.

“Government and defence”?

This seems clearly at odds with current government  policy of curring back the civil service. The military and other government sectors have lost at least 2000 workers, with more job losses planned.

The above articles may sound optimistic, but redundancies are still hitting our economy and impacting on society,

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The question that springs to mind is that if the drop in unemployed is real – is it due to new jobs or new job vacancies? The difference may seem subtle, but is very real. New jobs are an indicator that the economy is beginning to grow again.

Job vacancies are existing jobs that have been vacated for one reason or another, and are being replaced. It is sometimes referred to as “churn“.

With current wages low and not keeping pace with inflation and the recent increase in gst, it is hardly surprising that most New Zealanders have had the lowest wage increases in a decade,

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By contrast, we had somewhat more generous wage increases during the previous, unfairly-maligned, Labour Government,

Wage growth at a record high

Annual wage growth in the adjusted LCI (which measures changes in pay rates for a fixed set of jobs and excludes performance related pay increases) remained steady at 3.4% in the March 2008 quarter.  This is the equal highest rate recorded since the LCI began in 1992 matching the annual increase for the December 2007 year.

The unadjusted LCI (which includes performance related pay increases) shows annual wage growth of 5.4% in the March 2008 quarter, up from 5.0% at December 2007.
Annual wage growth in the QES (which includes performance related pay increases and is affected by the composition of employment) increased to 4.6% for the year to March 2008, up from 4.1% in the previous quarter.Source

Good times, eh, my fellow New Zealanders?

Despite John Key’s priority-pledge to raise wages – and not just by 38 cents!!! – we now have  a record flight of New Zealanders moving to Australia – 3300!

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As Ms Visser said,

It’s definitely a wake-up call – with 20 per cent of our workforce looking to leave at any one time it’s a scary thought.

Which indicates that this current government has done very little of practical value to motivate New Zealanders to stay and help build our own economy. Two tax cuts have certainly not worked the “magic” that Key, English, et al, had hoped.

Which suggests that Bill English’s May 2011 Budget statement, promising 170,000 new jobs may be a tad over-optimistic.,

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I guess the ‘moral’ of this piece is two-fold,

  1. Be cautious about  media stories that do not present the full story. A bit of ‘digging’ soon yields a fuller picture.
  2. Be cautious about politicians who promise you the world (you’ll be the one paying for it).

And I’ll finish this piece with a message from our Prime Minister, John Key,

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"The billboard also highlights Labour's failure to stem the tide of people voting with their feet and leaving New Zealand." - John Key, 1 Sept 2008

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Additional reading

Inflation outpaces income growth

Bill English: Focus on Finance – Budget 2011

Labour Market Reports – Archive Wage Growth – March  2008 Quarter

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National’s Grand Victory in Employment?!

8 September 2011 5 comments

The number of people on the unemployment benefit has dropped – but more people are claiming welfare.

Social Development Minister Paula Bennett said the figures dropped last month by 1145 to 55,974, the lowest it had been since July 2009.

But, because of a rise in those claiming the DPB and sickness benefits, total beneficiaries were up from 327,990 to 328,355.

In July the overall number rose by 0.1 per cent and an extra 855 people began claiming the unemployment benefit, mostly because of a drop off in seasonal work.

Bennett said more young people were finding work. “Unemployment benefit numbers dropped last month by with half of the decrease due to more young people going into work.”

Last month 7238 claimants found a job.  There were a number of short-term Electoral Commission jobs currently among 15,000 jobs with Work and Income, she said. 

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+++ Reality Check +++

The number of people recieving the unemployment benefit does not reflect the true numbers of unemployed. The actual numbers are determined by the Household Labour Force Survey.

This is because not everyone who is unemployed registers with WINZ. For example married/de facto couples where one is working and the other has lost his/her job, cannot claim for the Unemployment Benefit.

Currently the HLFS figures for unemployed are:

For the March 2011 quarter: 155,000 (6.6%)

In the June 2011 quarter: 154,000 (6.5%)

And youth unemployment remains unacceptably high, at over 19%.

The government has a long way to go before they can announce victory over unemployment.

Worse  still, with the government cutting back on youth training to the tune of $146 million, I think we can start to see where our economy is headed: low wage; “McJobs”; and easy investment, as Bill English suggested, not to long ago;

And to achieve those low wages, government has implemented the appropriate cuts;

Which means that, as government investment in education, training, science, and research is cut back, we get this;

But not to worry, fellow New Zealanders. The government is onto it.

16 and 17 year olds will be given a Purchase Card so they cannot buy booze and ciggies.

What’s that? It’s already illegal to sell 16 and 17 year olds alcohol and tobacco products??

Never mind – bene-bashers love it.