Unemployment up as jobs growth trails New Zealand population rise

New Zealand's unemployment rate edged up to 5.9 percent in the quarter ending June, despite a rise in the number of people in work, the government statistics agency said Wednesday.

The unemployment rate, which rose from 5.8 percent in the March quarter, came in parallel with a 0.3-percent rise, or 7,000 more people, in the number of people in work, according to Statistics New Zealand.

"Even though employment grew over the quarter, population growth was greater, which resulted in a lower overall employment rate for New Zealand," labor market and household statistics manager Diane Ramsay said in a statement.

"Despite lower quarterly growth, this is still the 11th consecutive quarter of employment growth, making it the second- longest period of growth since the period between 1992 and 1996."

Over the year to June, employment growth was still fairly strong at 3 percent, or 69,000 more people employed, with the manufacturing sector showing the strongest annual employment growth.

"This is the first time since the December 2013 quarter that the construction industry has not been the largest contributor to annual growth in employment," Ramsay said.

Annual wage inflation was 1.6 percent, compared with annual consumer price inflation of 0.3 percent.

Tertiary Education, Skills and Employment Minister Steven Joyce said it was pleasing to see continuing job growth, despite some economic headwinds.

"The economy continues to diversify and grow jobs in most regions over the past year despite sharply lower dairy prices and some international uncertainties," Joyce said in a statement.

However, the main opposition Labor Party said the figures showed projections of falling unemployment were proving wrong as jobs growth failed to keep up with population growth and migration.

"Today's unemployment figures show that there are now 148,000 New Zealanders out of work, 10,000 more than this time last year," Labor finance spokesperson Grant Robertson said in a statement.

"These are not just numbers. That is an extra 10,000 people and their families who are struggling to find the work and income they desperately need."

The Council of Trade Unions (CTU) said unemployment should have been falling after several years of economic growth.

"While the employment rate is still high, the continuing strong net immigration may be crowding out people leaving education or out of work, who may be finding it even harder to find jobs than the statistics show," CTU economist Bill Rosenberg said.

"Along with increasing pressure on beneficiaries to find work, high net immigration is also holding down wage rises." Endi