Further job losses predicted in Canterbury

Up to 17,000 people are out of work in Canterbury and many jobs are "on the line".

In the three months to December, the number of unemployed rose by 11,000 nationally, translating into about 1750 job losses in wider Christchurch.

New Zealand's unemployment rate rose to a five-year-high 4.6 per cent in the December quarter and industry experts fear the jobless rate will rise to 7.5 per cent or more by year's end.

Unemployment has hit 105,000 nationally, meaning up to 17,000 people are jobless in Canterbury, as the region accounts for about 16 per cent of the New Zealand economy.

Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said job losses were being felt across the board and many jobs were now "on the line".

"The hospitality sector is suffering at the less-skilled level, manufacturing of course has taken a bit of a hiding, and the service sector generally.

"A lot of law firms have downsized; a lot of accounting firms have looked at how they can get involved, but most of it's been done by attrition to date."

The national 4.6 per cent jobless rate is up from 4.2 per cent in the September quarter.

Townsend said many firms lost workers through attrition in the lead-up to Christmas.

However, firms were now telling the chamber that large-scale layoffs involving redundancies were in the offing.

"I know there are unemployment projections out there of 7 per cent, 7.6 per cent at year end. I think that's right on the cards."

He was advising firms to take the same approach as that of the chamber, which had 30 per cent of its staff on flexible working arrangements, to avoid layoffs.

This week, Telecom announced it would shift 250 call-centre jobs to Manila over the next 18 months, while another big employer, Air New Zealand, had cut its long-haul cabin crew.

However, Statistics New Zealand said there was an increased participation rate, with more people taking on part-time work.

New Zealand Manufacturers and Exporters Association chief executive John Walley said its monthly survey indicated lower staff numbers.

"Things are slowing. Do I think we'll see a doubling in unemployment? I bloody hope not. But the party has got to be paid for and we've had a five-year party around the world and now we're facing the hangover," Walley said.

The Government was merely "playing around the edges" in terms of stimulus.

- © Fairfax NZ News