A recent report by the Ministry of Business, Innovation and Employment has claimed that jobless rate in New Zealand is expected to go down below 6% in 2014. It was shocking to know that unemployment rate in the June-quarter had shot up to 6.8%, contrary to the beliefs that it will fall.
“The domestic recovery is expected to accelerate as the Canterbury rebuild ramps up. This will lead to a steady improvement in the labour market, with moderate employment growth in the short-term”, said the MBIE. The same report has also predicted that jobless rate would drop to 6.2% in March 2013 and 5.9 per cent in March 2014.
Another main point mentioned in the report in the crucial role played by baby boomers which despite their age are contributing a lot in current labour market dynamics as compared to international standards.
It is expected that the ministry would soon unveil labour market statistical analysis and forecasts, which are rendered by the Department of Labour earlier. It has further been said in the report that though economic growth is not going fine, employment growth is still doing a lot good as compared to what was seen in 1997/98.