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Source: Reuters -
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New Zealand's unemployment rate dropped from 7.1% to 6.0% during
the March quarter, says Statistics New Zealand.
The fall, in seasonally adjusted terms, is the first decrease in
the unemployment rate since the December 2007 quarter in the
Household Labour Force Survey, which is based on a survey of 15,000
Kiwi households.
The 1.1% fall is the largest in the unemployment rate since the
survey began in 1986 says Statistics NZ and the rate drop was
higher than markets and commentators had expected.
"To summarise in one word: WOW! The New Zealand labour market has
turned," was ASB NZ Economist Chris Tennent-Brown's reaction to the
news.
"We expected that the labour market would turn during Q1 (first
quarter of 2010), but not as impressively as the survey showed,"
says Tennent-Brown.
The significant change means 22,000 new jobs were created in the
first quarter of 2010 with seasonally adjusted employment now at
2,177,000.
This 1% lift in the number of people employed is the biggest rise
since June 2008's 1.2% gain.
The number of people unemployed dropped by 25,000 during the
quarter while labour force participation remained unchanged.
"Typically in the March quarter, temporary employment associated
with the Christmas and New Year period and seasonal agricultural
activity declines, and unemployment increases," says manager of
labour market statistics, Peter Gardiner.
"But this March quarter we have seen an unexpected fall in
unemployment, particularly among young men."
The rise in employment during the March 2010 quarter followed a
revised increase of 0.1% for the December 2009 quarter.
Employment rose for both men and women, with a big rise in full-time employment for men (up by 19,000) and a smaller jump for women (7,000).
Part-time employment fell by 3,000 during the quarter.
The positive news on the economy was reflected in a speech today by Reserve Bank Governor Alan Bollard who said New Zealand's recovery from the global financial crisis is entering a new, less fragile stage.
