Employment prospects in local region still strong, says adviser
The rate of unemployment in New Zealand has risen to 3.9%, Statistics New Zealand has announced.
The ‘underutilisation rate’, which measures spare capacity in the labour market, increased to 10.4%.
Released on Wednesday, Labour Market Statistics for the September 2023 quarter shows the official unemployment rate rose from 3.6% the previous quarter.
A measure of people actively seeking and available for work, it marks the second rise in unemployment after it rose to 3.6% in the June quarter, following two quarters at 3.4%.
Compared to the June 2023 quarter, the number of unemployed people increased by 8,000, while the number of underemployed people (those who work part-time and want and are available for more work), grew by 7,000, contributing to a 13,000 increase in underutilisation.
Young people aged 15-24 accounted for half the total rise in underutilisation over the year, at 26,500 out of a total increase of 53,100, Statistics NZ said.
Statistics New Zealand work and wellbeing senior manager Victoria Treliving (pictured above left) said the unemployment rate had increased over the last year, “up from 3.2% in the September 2022 quarter”.
“Increases in unemployment and underutilisation over the year indicate increasing spare capacity in the labour market following competitive labour market conditions in 2021 and 2022,” she said.
Employment in Manawatu region remains strong, says business owner
Taylored Mortgages founder and director Jen Taylor (pictured above right) told NZ Adviser ahead of the official figures being released that borrowers in the Manawatu region felt confident about their job security and prospects.
Employment opportunities in the region were fairly strong, she said, noting the Linton Military Camp and Royal New Zealand Air Force base in Ohakea, and the region’s sizeable agriculture industry.
As the labour market remained tight, employers were willing to be flexible to retain quality staff, she said.
“We have clients who will come in for an approval who are short on income, so they’re looking elsewhere to increase this, they’ve then gone back to their employer, and they have increased it,” Taylor said.
“We’re in a really sound position here in the Manawatu region…we haven’t seen a lot of job losses among our existing clients and of any that are on the horizon, it’s been easy for them to pick up work.”
Taylor said that she and her team kept thorough notes around employment in applications submitted to lenders and confirmed that lenders applied different rules around the minimum period of employment for mortgage approvals.
Overall, Taylor said that there was an underlying confidence in the strength of the labour market and a shortage of qualified workers.
Do clients feel confident about their employment prospects and what does the rise in unemployment represent to the mortgage industry? Share your thoughts in the comments section below.
