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Labour says short-term jobs created by the Rugby World Cup are masking the "true crisis" in New Zealand's job market.
Social Development Minister Paula Bennett today released figures showing the number of people on the unemployment benefit was at a two year low.
Half the decrease was down to more young people finding work, Bennett said.
The number of people on the unemployment benefit stood at 55,974 - the lowest since July 2009, a decrease of 1145.
Bennett said figures had dropped 18% since the peak in January last year when there were 68,369 on the dole.
"Last month 7238 beneficiaries went off welfare into work," she said.
"By the end of August, Work and Income had 380 vacancies for Rugby World Cup jobs, mostly in hospitality and security roles."
But Labour's employment spokesperson Jacinda Ardern said the majority of jobs being filled are for just three weeks.
"When National took office there were 8786 young people on the unemployment benefit. There's now double that number," Ardern said.
"What the Government - the same Government that has axed close to 250 jobs at DoC and the IRD this week - also fails to comprehend is the thousands of people in part-time or temporary work who want full-time work.
"They're not classified as unemployed but they are definitely competing with the unemployed for jobs."
Bennett says advertised job vacancies continue to grow and Department of Labour figures show all vacancies had risen 49.7% since the lowest point in June 2009.
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