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It’s Never Too Late to Talk Employment

Posted by Sua William Sio on March 11th, 2012

After marching and listening to workers at the rally in Auckland yesterday, as well as listening and talking to some of the Auckland Councillors I think that despite the widening rift between the POAL management and union, it is imperitave that the two parties come together and continue talking.

Both management and the union need to be aware that Aucklanders are equally concerned for the welfare of the workers and their families affected by the dispute, and equally just as concerned for the future of teh waterfront industry in the role the ports play in building a vibrant Auckland economy.

So the offer of help by the Roman Catholic and Anglican Bishops of Auckland to mediate between the Ports of Auckland and the Maritime Union should be taken seriously by these two parties for the sake of the people of Auckland.

I think both the management and the union need to know that it shouldn’t be about whether we dumb one or the other, and that both the Ports and its workforce are equally important for teh welfare of the Auckland region and its peoples.

But it should also be said that the stronger party, namely the Ports of Auckland Limited, should recognise that their decision to sack these workers will have a direct and more significant impact on bread and butter issues for families in the Auckland region, who are already stretched and challenged with spiralling costs of electricity, food and other necessities, high unemployment, lower wages and the austerity measures by thie John Key government.

I don’t think its too late for both these parties to sit down and continue their dialogue. It should never be too late to talk about achieving productivity targets and job security, and ultimately how to build a better society for the benefit of people, and in this case for the sake of Auckland.

I would like to see the two parties take up the Church leaders offer and strive to reach an amicable agreement that will benefit the Auckland region and its peoples.


Youth NEETs change since 2008

Posted by Sua William Sio on February 26th, 2012
Youth NEETs

Youth NEETs

Despite the foodhardy belief by some that all is well with New Zealand employment under National, if they would just pull their heads out of John Key’s armpits for a second and took seriously that our unemployment rate from Dec 2008 to Dec 2011 has doubled, and these are NOT just numbers but REAL people with families to support, then perhaps they might get a sense of the looming employment crisis that I’m talking about. Take note of the job losses so far announced with MFAT, Air NZ, and a host of other companies that have laid off workers in the last few months.

What should also compoud our collective concern is the increasing numbers of Youth Not in Employment, Education or Training. As of December 2011 they numbered 83,000 as highlighted in the graph above.

Some might be providing homecare to family members but I suspect the vast majority are drifting doing nothing. These are our future leaders – now mostly at risk. Without work, without skills and without the hope for a better future, what will be the chances of them slipping into drugs, alchoholism, crime and benefit dependency? If these trends continue to worsen, what is there to stop it from becoming a ticking time bomb making New Zealand susceptible to the kinds of riots we’ve witnessed on TV occuring in Europe and the likes.

The NZ Institute who released proposals last year of reducing youth disadvantage estimated that the cost of youth unemployment, youth incarceration, youth on the sole parent benefit and taxes forgone, is around $900 million per year. Youth Not in Employment, Education or Training is not only a tragic waste of talent and potential, but we also all carry the cost.

We should also be worried that Maori & Pasefika youth make up a large number of NEETS. While the 6.3% unemployment rate in NZ is worrying, its not at the crisis levels of the PIGS. But the 6.3% unemployment rate hides the fact that for some parts of New Zealand unemployment truly is at crisis levels. I’ve shown int the graph below the figures by HLFS showing 43.3% of Pasifika 15-19 year olds are unemployed. That’s a shocking figure, right up there with the worst youth unemployment rates of Europe.

Pasifika & Maori Youth Unemployment

Pasifika & Maori Youth Unemployment


NZ unemployment increases vs OECD increases

Posted by Sua William Sio on February 24th, 2012
NZ % increase in unemployment rate since Dec 2008 vs OECD increase

NZ % increase in unemployment rate since Dec 2008 vs OECD increase

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.


National’s job claims vs reality

Posted by Sua William Sio on February 23rd, 2012
National's job claims vs reality

National's job claims vs reality

Even though the Household Labour Force Survey report reveals that John Key’s ‘brighter future’ promise has utterly failed to materialise in terms of jobs for a growing group of New Zealanders, it hasn’t stopped Mr Key claiming it won’t still come true. Yet we know he has no overall plan, no vision for how this will happen. Last year he made the incredible claim that Budget 2011 would create 170,000 jobs over the next 5 years. He continued to make this claim despite not being able to show anything in the Budget that would actually lead to job creation other than low interest rates and ECE funding. Simply managing the economy and ticking off boxes and hoping that market forces will deliver on the jobs is unbelievable. As expected the Govt is on track to once again fall short of its promise. The 2011 Budget documents predicted 36,000 jobs would be created in the year to March 2012. As at Dec 2011 just 10,000 jobs have been created, leaving the Govt to create a massive 26,000 jobs in the final quarter. If JohnKey keeps promising New Zealanders the world but not delivering, his credibility will be on the line, and we all know the story of the boy who cried wolf, don’t we?


Total Employment Change from 2008 Reveals Imminent Crisis

Posted by Sua William Sio on February 21st, 2012

Increase in unemployment under National

Increase in unemployment under National

The Household Labour Force Survey Survey report of the December 2011 Quarter released last week revealed that our unemployment rate slipped slightly to 6.3% from 6.6%. While a rate of 6.3% in itself doesn’t necessarily mean we have reached crisis levels, the focus on the overall unemployment rate does conceal detail about our employment situation that if brought to the surface will shine light on what I believe is an immiment crisis looming in our economic horizon.

Since JohnKey’s National took office in November 2008, 53,000 New Zealanders have joined the unemployment ranks. That’s a 54% increase in the number of people unemployed to a total of 150,000. For these people, National’s promise of a ‘brighter future’ has utterly failed to materialise, especially if you have a mortgage and teenage children you are supporting through school.

While the impact of the recession cannot be ignored, the number of people unemployed has actually increased since the recession officially ended in mid-2009. The official unemployment figures only tell part of the story. Many more people are without work but are not counted as being unemployed. Many are described by the Salvation Army as being “discouraged unemployed”. They would like to work and would accept a job offer if given, but they would not be deemed as actively seeking work because for instance looking for work through a newspaper does not meet the threshold of “actively seeking work”. The number of Kiwis jobless has increased by almost 100,000 under National’s watch to now 261,300 people as of December 2011. In the meantime 59,964 people are receiving the Unemployment Benefit as at December 2011 a fall of 7% from 67,084 as of the December 2010.
So is this it? Is this the brighter future promised to all New Zealanders?

Number of people jobless