Employment market has ‘lost a bit of steam’
BNZ senior economist Craig Ebert tells NBR Radio employment statistics are always "quite volatile"
Although today’s 0.4% fall in employment “shocked the market,” the drop makes sense when it is compared with New Zealand’s economic performance over the past six months.
This is according to BNZ senior economist Craig Ebert, who says many analysts were expecting employment to rise by 0.4%, not fall.
He says the disappointing figures were down to a fall in part-time employment, “which is a series that can jump around quite a lot from quarter-to-quarter.”
“Full time employment showed an increase, but it was not as strong as it has been in recent quarter,” he says.
Statistics New Zealand figures show the participation rate fell to 68.6% from 69.3%.
But Mr Ebert says these figures are quite volatile as well, “if you look back even six months ago it was running at extraordinarily strong rates.”
“That was part of the reason the participation rate had risen as well.
“This is an indication the employment market has lost a bit of steam in the past six or so months,” he says.
Infometrics economist Mieke Welvart says the drop in employment suggests firms are more pessimistic about the year ahead.
“With weak business confidence, a mismatch of skills availability compared to firms’ labour needs, and drought on the horizon, we expect employment growth to remain subdued over 2016.”
Jason Walls
Wed, 04 Nov 2015
Wed, 04 Nov 2015
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Employment market has ‘lost a bit of steam’
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