Stubborn jobless rate raises questions over New Zealand economic growth

New Zealand's unemployment rate stuck at 5.8 percent in the quarter ending March despite more people joining the workforce, the government statistics agency said on Wednesday.

Despite the jobless rate being unchanged from the December 2014 quarter, the labor force participation rate reached an all-time high of 69.6 percent, according to Statistics New Zealand.

"This is the greatest share of New Zealanders we have ever seen in the labor force. The largest increase came from 20 to 34-year- olds, who accounted for nearly half this year's increase," labor market and households statistics manager Diane Ramsay said in a statement.

Annual wage inflation was steady at 1.7 percent, with average hourly earnings up by 2.1 percent, the lowest rise since the year ending June 2013.

Tertiary Education, Skills and Employment Minister Steven Joyce said the figures showed continuing strong jobs growth, which was encouraging.

"We have seen job growth in 16 out of the last 17 quarters, and job growth is running ahead of Treasury predictions," Joyce said in a statement.

"In Budget 2011, Treasury forecast 171,000 more jobs in the four and a half years to June 2015. The current figure of 194,000 is 23,000 more than that target, with one quarter still to run."

The 2.1-percent rise in average hourly wages showed they were rising faster than the cost of living, which was up just 0.1 percent, according to the consumer price index.

However, the main opposition Labor Party said the stubborn unemployment rate and the wage growth, which was the lowest in two years, failed to reflect the 3-percent growth rate in the national economy.

"New Zealanders will be wondering what the point of economic growth is, if it does nothing for everyday working people," Labor leader Andrew Little said in a statement. Endi