Nelson unemployment rate lowest nationwide

Nelson has the lowest unemployment rate in the country for the June quarter, but commentators warn the job market is still tough and the figures should be viewed with caution.

Unemployment in the Nelson Tasman Marlborough West Coast region was at 3.2 per cent for the June quarter, according to the Household Labour Force Survey.

This was down from 5.1 per cent for the March quarter and much lower than the national unemployment rate of 6.8 per cent for the three months to June.

Unemployment rose by 19,000 nationally to reach 159,000, an increase which was much higher than economists predicted.

The lack of jobs is said to be hitting the young, Maori, and Pacific Islanders the hardest. The top half of the North Island was also suffering.

Labour's Maori affairs spokesman, Parekura Horomia, said 26,400 Maori were without jobs – up 3600 since the last quarter.

Nelson MP Nick Smith said the fact the figures for Nelson were again below the national average showed the resilience of the Nelson economy. However, he warned it was still difficult for businesses and the employment market was still tough.

The forestry sector had lifted in its employment and exports over the last year but most sectors were feeling the pain.

Dr Smith said the figures from the Household Labour Force Survey were based on a random survey of 15,000 households and provided a good and accurate picture at national level. However, when they were broken down to a regional level they could be volatile due to the smaller number of households surveyed.

He believed the job market would remain tight until late 2011.

Ministry of Social Development acting regional commissioner, Wendy Chisnall, said the region's unemployment rate was now the lowest in the country. The survey also showed that the number of working age people in the region had decreased by about 2 per cent.

She said it was important to remember that the survey was not aligned with ministry statistics, which were based on the number of people receiving benefits.

At the end of June there were 584 people in the Nelson Tasman region receiving an unemployment benefit, up from 501 in March this year but slightly down on the same time last year when 590 were unemployed.

- © Fairfax NZ News

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