Economic rebound falls through hole in road
The latest unemployment figures prove quite clearly that the so-called economic rebound under National is not only worse than bumpy, but has fallen through a large hole in the road, says Labour Finance spokesperson David Cunliffe.
“A jump of more than 12 percent in the number of unemployed Kiwis is far worse than anyone predicted,” David Cunliffe said. “National has no plan to build a strong economy. This bumbling government stumbles along with no economic clue beyond giving all employers the right to fire young Kiwis in their first 90 days on the job.
“The Reserve Bank thought unemployment would remain static. Treasury and Westpac thought it could reach 6.2 percent. No one predicted 6.8 percent.
“This result is one of the worst on record for many quarters, and is an indictment of National’s inaction,” David Cunliffe said.
“The figures for the past year are actually even worse than for the past quarter. Annually the number of unemployed rose by 22,000 or 16.2%. Both male and female unemployment increased, up 15,000 or 21.4% for males, and 7000 or 10.6% for females.
“It’s also worth noting at 6.8% this is only 0.3% off the quarterly peak in December 2009 at the end of the recession. We seem to be bouncing all over the show on the floor of the trough not climbing up the other side,” David Cunliffe said.
“The results call into question the Government’s unreliable growth projections and budget forecasts, and makes a mockery and a downright lie of its claims over the past week or so that New Zealand is catching up with Australia.
“That is an absolute nonsense. No wonder government ministers are refusing to give Kiwis any economic milestones by which they can be held accountable,” David Cunliffe said. “They are desperately trying to avoid accountability at all costs.
“These shocking unemployment figures come on top of three months of decline in key commodity prices like dairy, three months of falling business confidence, and deteriorating conditions for small business.
“Kiwis deserve a credible economic plan. They deserve better than half-baked ideas like mining National Parks, cycle ways to nowhere, selling holidays and firing at will, and flogging off farmland and productive assets.
“Deregulation and trickle-down tax cuts aimed at the wealthy few are no one’s idea of a growth strategy. There is no comfort in these figures either for business or the 22,000 New Zealanders who have been added to the unemployment scrap heap.”
