The graph above compares the change in NZ’s unemployment rate since December 2008 to that of other developed countries. It shows that NZ’s unemployment rate has increased at about twice the rate of Europe.
JohnKey claimed that NZ’s unemployment rate is out of his control. He claimed that it’s the economic performance of Europe, Asia and the US that determines job growth in NZ. While there’s no arguing we live in a closely interconnected world and NZ is not immune to global down turns, Mr Key is somewhat passing the buck here.
The Govt can and does have massive influence on our economy and employment rates. For example the PSA reported more than 3500 public service jobs lost in last 3 years, as a result of Govt policy including the so called “capping” of the public sector policy, and with more public service job losses to come – recent announcement of 305 MFAT jobs to go.
The European debt crisis is not the only factor in our high unemployment rate and JohnKey’s govt as the most influential player domestically must take some responsibility.
New Zealand’s actual unemployment rate is still lower than the OECD average but this is because we started in 2009 at a lower rate, not because we haven’t suffered through the recession.