Unemployment still higher for women, Maori: CTU

Wednesday, 3 February 2021

While there’s been a big rise in female builders, females overall still have a higher unemployment rate than men.

Gender and ethnic divides continue to be a problem in the labour market, despite a steep fall in unemployment.

Statistics NZ data show the unemployment rate unexpectedly dropped in the December quarter, from 5.3 per cent to 4.9 per cent.

There were 10,000 fewer people out of work in the December quarter than in September, although there was still 25,000 more people out of work than a year ago – 15,000 of them women.

Women suffered more greatly after lockdown largely because they were more dominant in the part-time work space.

Queenstown tourist company boss Mark Quickfall is feeling the responsibility of keeping staff employed while the borders remain closed.

* Shock fall in unemployment to 4.9 per cent

* Construction job gains make up for tourism, media losses

The unemployment figures out on Wednesday showed that although female unemployment fell by 5000 during the quarter, it continued to be higher than male unemployment at 5.4 per cent versus 4.5 per cent.

Council of Trade Unions economist and policy director Craig Renney said there were plenty of countries who would ''give their eye teeth'' to have a similar unemployment rate.

But once one got below the headline figure, inequalities still existed and the recovery wasn't even, particularly for female, Maori/Pacific and young workers.

''Whilst some groups are doing well and returning to pre-Covid 19 normal, others are still doing it tough. Those groups who traditionally faced challenges in the labour market are still struggling and more government support will be necessary.''

A lack of workers among Marlborough wineries have boosted competition for staff and wages. Cellar hand Margot Charieras had a pay rise a month ago.

The CTU said the figures also showed a clear racial divide. The number of Maori unemployed increased from 8.4 per cent or 33,400 at the end of 2019, to 9 per cent or 36,000 last year.

The Pacific unemployment rate went from 7.2 per cent or 14,500 people, to 9.6 per cent or 17,500 people.

Youth unemployment was also on the rise. Fifteen to 29 year olds out of work rose from 8.4 per cent to 10.1 per cent annually.

And while economic growth was returning, wage growth for many was stagnant, Renney said.

''The headline figure looks really good but when you dig in to that data, 55 per cent of workers recorded that they didn't have a pay rise in the past year and that's the highest figure that hasn't had a pay rise since March 2010.''

Ordinary-time hourly earnings increased on average by 4.2 per cent to $34.14 in the year to December, and ordinary-time weekly earnings increased to $1,289, up 3.6 percent annually.

But a measure of wage movements between public and private sectors showed that annual wage increases in local government were running at 0.9 per cent, below inflation (1.4 per cent), while increases in the private sector had barely kept up with inflation (1.5 per cent).

According to Statistics New Zealand, the rise in wages was driven by changes among industries.

The number of filled jobs and hours in lower-paid industries like administration and support services fell while jobs and hours in higher-paid industries stayed stable.

An ANZ economic note said that it would be difficult for unemployment to fall rapidly until the borders opened, so the resulting skills shortage was keeping wages supported.

''Overall this points to only a gradual lift in wage inflation, particularly given firms are already facing cost increases on a number of other fronts.''