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Jobs section in newspaper - Source: ONE News -
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The best we can hope for from Thursday's 7.3% unemployment figure is that the rate has peaked.
However, the latest figures for the December 2009 quarter shows the recovery is more fragile than first thought. The fact that the economy is still struggling to create enough jobs to meet the growth in the working age population suggests there may be more pain to come.
What the figure means for homeowners is that will likely significantly ease pressure on the Reserve Bank governor to hike interest rates before June. This was highlighted by the sharp fall in the Kiwi dollar after the announcement, with investors banking on New Zealand interest rates not increasing at the rate previously indicated.
How does NZ stack up?
When compared with Ireland at 12.7% and the US at 10%, 7.3% looks passable.
However, New Zealand's unemployment rate is way ahead of Australia on 5.5% and that's a dangerous place to be as it makes Australia a more attractive place for our skilled workers.
The rate will also be a wake-up call for the government ahead of its speech next week outlining its economic agenda.
And, with hopes that the rate would peak under or at 7% being well and truly dashed, it is not surprising that unions are starting to get more vocal over the need for the government to do more.
In particular they are questioning the merits of the much heralded Job Summit at the beginning of last year.
Follow this story through to 6pm when Corin Dann talks
more about the unemployment rate.
