2 May 2018

Unemployment edges down, wage growth remains muted

12:50 pm on 2 May 2018

The unemployment rate has fallen to a nine-year low.

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Photo: 123rf

Official figures show the the unemployment rate declined to 4.4 percent in the first three months of the year, or 119,000 people, compared with 4.5 percent in the previous quarter.

It's the lowest jobless rate since late 2008.

Employment rose 0.6 percent in the quarter and 3.1 percent for the year, mainly due to more women in work.

Auckland experienced the largest annual growth, followed by Otago, Canterbury and Waikato.

Most of the jobs created came in the professional, scientific, technical, administrative and support services, followed by retail trade and accommodation.

The underutilisation rate, which measures the number of people working who are seeking more hours, fell to 11.9 percent, or 340,000 people.

The participation rate edged down to 70.8 percent.

Wage growth remained subdued, rising 1.8 percent.

Statistics New Zealand said the growth was mainly due to the pay equity settlement for aged care workers.

Excluding that, wages would have grown 1.6 percent.

Annual average ordinary hourly wages rose 3.5 percent to $30.96, the largest annual increase in six years.

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