Photo: RNZ / Quin Tauetau
- Two thousand jobs gained in Q1, but unemployed grew 22,000 over the past year
- Shift of people to part time work from full time
- Annual wage growth slows to 2.9 percent from 3.3 percent
- Data better than expected, backs further RBNZ rate cut in two weeks
Unemployment has held steady at a four-year high as a slowly recovering economy added a small number of jobs, but slack in the jobs market increased, while wage growth slowed further.
Stats NZ numbers showed the unemployment rate unchanged at 5.1 percent in the three months ended March.
The rate was better than expectations of a 5.3 percent unemployment rate.
Unemployment has been steadily rising as business either sacked staff or stopped hiring because of the weak economy, while the workforce has increased despite a slowdown in migration.
"While unemployment was unchanged over the quarter, longer term trends mean the labour market appears quite different to the same quarter last year," Stats NZ labour market spokesperson Abby Johnston said.
The level of underutilisation, a measure of slack in the jobs market, rose to 12.3 percent from 12.1 percent.
The economy added about 2,000 jobs during the quarter, but shed 21,000 jobs over the past 12 months.
The number of young people between 15 and 24 years not in education or training decreased to an unemployment rate of 12.9 percent.
Stats NZ said there was a marked shift in people moving to part time work.
Full time employment fell by 45,000 over the year but part time work grew 25,000.
"Approximately 21 percent of employed people work part-time -- 12 percent of men and 30 percent of women," Johnston said.
Part time work is classified as working fewer than 30 hours a week.
Full time female unemployment held steady at 5.3 percent, but Māori and Pacific unemployment rose markedly towards 10 percent.
The broad measure of wages showed overall growth slowing to 2.9 percent from 3.3 percent.
Private sector wages rose 2.6 percent annually, the lowest in four years, but public sector wages were up 4.2 percent, reflecting pay settlements.
The data was close to Reserve Bank forecasts and is likely to support another 25 basis point cut in the official cash rate to 3.25 percent in three weeks.
