The latest figures show a drop in labour demand in New Zealand.

The country’s unemployment rate rose from 4.6 percent in the December 2008 quarter to 5.0 percent in the March 2009 quarter, the highest rate for six years.

Unemployment numbers increased by 7,000 to reach 115,000. The rise in the number of people unemployed is lower than many analysts had predicted.

The labour force participation rate fell from 69.1 percent to 68.4 percent.

The number of people employed in New Zealand fell from the all-time high of 2.191 million, in December 2008, to 2.182 million.

In the tables below we have summarised the government’s Statistics NZ unemployment figures for different ethnic groups, age groups and regions of New Zealand.

Unemployment rose for all ethnicities and age-groups. Particularly badly affected were Pacific Peoples, whose unemployment rate rose from 7.8 to 13.1 percent.

Unemployment rose in all regions except for Taranaki, Southland and Tasman / Nelson / Marlborough / West Coast.

Commenting on the figures, David Lowe, Employment Services Manager for the Northern Employers and Manufacturers Association said:

“Today’s report on the rise in unemployment to five percent for the March quarter does not include the large number of people laid off last month.

“Most staff are being told there will be no wage increases this year, or decisions on wage increases are being deferred.

“The turnaround from last year when wage increase expectations were 4 to 5 per cent is huge.

“The sooner everyone comes to terms with the fact there will be no wage increases this year the faster we will find a base on which to build a recovery.”

Unemployment by Ethnic Group

Ethnicity Unemployment
Rate
European 3.8%
Maori 11.9%
Pacific Peoples 13.1%
Asian 6.6%

Unemployment by Region

Region Unemployment
Rate
Northland 9.0%
Auckland 6.5%
Waikato 5.8%
Bay of Plenty 6.3%
Gisborne / Hawkes 7.8%
Taranaki 2.6%
Manawatu/Wanganui 5.0%
Wellington 5.5%
Tasman / Nelson / Marlborough / West Coast 2.9%
Canterbury 4.6%
Otago 4.3%
Southland 2.8%

Unemployment by Age-Group

Age Group Unemployment
Rate
15 – 19 19.6%
20 – 24 12.0%
25 – 29 4.8%
30 – 34 4.9%
35 – 39 4.3%
40 – 44 3.6%
45 – 49 3.9%
50 – 54 2.5%
55 – 59 2.8%
60 – 64 3.4%