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Gross Domestic Product (GDP) | Income Inequality | Child Poverty and Living Standards |
Unemployment Rates | Children Reliant on Benefit Recipients | Appendices

Unemployment Rates

Introduction

In the quarter ending December 2009, seasonally adjusted unemployment rates rose to 7.1%, their eighth consecutive quarterly rise. Since then unemployment rates have remained in the mid-to-high 6% range, with rates in the most recent (June 2011) quarter being 6.5% [1]. Throughout this period, unemployment rates have been higher for Māori and Pacific people, young people (particularly those 15–19 years) and those without formal qualifications [2]. Such increases are of concern for New Zealand children and young people two reasons:

Firstly, research suggests that children in families where their parents are unemployed have higher rates of psychosomatic symptoms, chronic illnesses and low wellbeing, and that while the magnitude of these associations is reduced once other potentially mediating factors are taken into account (e.g. parents former occupation, sole parent status, and migrant status), the associations do not disappear completely [3]. Further, research suggests that these negative effects may be mediated via the impact unemployment has on parents mental health, with the mental distress associated with decreased social status, disruption of roles, loss of self esteem and increased financial strain, all impacting negatively on parent’s emotional state [3]. This in turn may lead to non-supportive marital interactions, compromised parenting, and children’s internalising (e.g. withdrawal, anxiety, depression) and externalising (e.g. aggressive or delinquent behaviour, substance abuse) behaviour [4].

Secondly, for young people the research suggests that unemployment leads to a range of negative psychological outcomes including depression, anxiety and low self esteem, which are in turn associated with adverse outcomes such as heavy tobacco, alcohol and drug use; and higher mortality from suicide and accidents [5]. While social support may reduce the psychological distress associated with unemployment, the type of support provided is important (e.g. while positive support from family and friends decreases psychological distress amongst unemployed youth, parental advice may at times increase distress, as it may be perceived as pressure to find a job [5]). On a more positive note, research also suggests that this psychological distress decreases once young people find permanent employment, or return to further education [5].

The following section uses information from Statistics New Zealand’s Quarterly Household Labour Force Surveys, to review unemployment rates during the past two decades.

 

New Zealand Distribution and Trends

Seasonally Adjusted Unemployment Rates
In the quarter ending June 2011, the seasonally adjusted unemployment rate remained static at 6.5%, with seasonally adjusted unemployment numbers also remaining static at 154,000 (Figure 1). The number of people employed increased slightly (by 1,000) to reach 2,214,000 [1].

Figure 1. Seasonally Adjusted Unemployment Rates, New Zealand Quarter 1 (March) 1986 to Quarter 2 (June) 2011

Source: Statistics New Zealand, Household Labour Force Survey. Note: Rates have been seasonally adjusted.

Unemployment Rates by Age
In New Zealand during June 1987–2011, unemployment rates were consistently higher for younger people (15–19 years > 20–24 years > 25–29 years > 35–39 years and 45–49 years). During the year ending June 2011, annual unemployment rates were 26.0% for those aged 15–19 years and to 12.0% for those aged 20–24 years (Figure 2).

Unemployment Rates by Age and Gender
In New Zealand during June 1987–2011, there were no consistent gender differences in annual unemployment rates for young people aged 15–24 years. During the year ending June 2011, unemployment rates for those aged 15–19 years were 26.0% for females and 25.9% for males, while for those aged 20–24 years, rates were 11.3% for females and 12.5% for males (Figure 3).

Figure 2. Annual Unemployment Rates by Age (Selected Age Groups), New Zealand June
1987–2011

Source: Statistics New Zealand Household Labour Force Survey

 

Figure 3. Annual Unemployment Rates by Age and Gender in New Zealand Young People
Aged 15–24 Years, June 1987–2011

Source: Statistics New Zealand Household Labour Force Survey

Unemployment Rates by Ethnicity
In New Zealand during 2007(Q4)–2011(Q2) unemployment rates were consistently higher for Māori and Pacific > Asian > European people. Unemployment rates increased for all ethinic groups during 2008 and 2009, but became more static during 2010–2011(Q2) for Māori, Pacific and European people. However, rates for Asian people declined during 2010(Q3)–2011(Q2). Thus by 2011(Q2), unemployment rates were 12.6% for Māori, 13.7% for Pacific, 6.5% for Asian and 5.3% for European people. (Figure 4).

Unemployment Rates by Qualification
In New Zealand during the years ending June 1987–2011, unemployment rates were higher for those with no qualifications > school qualifications, or post school but no school qualifications > both post school and school qualifications. In the year ending June 2011, unemployment rates were 10.3% for those with no qualifications, 8.5% for those with a school qualification, 8.4% for those with post school but no school qualifications and 4.1% for those with both post school and school qualifications (Figure 5).

Duration of Unemployment
In New Zealand during the years ending June 1987–2011, duration of unemployment varied markedly, and in a manner consistent with prevailing unemployment rates. Thus the highest proportion of people unemployed for 53+ weeks occurred during the early / mid 1990s, when unemployment rates were at their peak, while the highest proportion unemployed for only 1–4 weeks occurred in the mid–late 2000s, when unemployment rates were at their lowest (Figure 6).

Figure 4. Quarterly Unemployment Rates by Total Response Ethnicity, New Zealand Quarter 4 (December) 2007 to Quarter 2 (June) 2011

Source: Statistics New Zealand Household Labour Force Survey. Note: Ethnicity is Total Response

 

Figure 5. Annual Unemployment Rates by Qualification, New Zealand June 1987–2011

Source: Statistics New Zealand Household Labour Force Survey

 

Figure 6. Proportion of those Unemployed by Duration of Unemployment, New Zealand
June 1987–June 2011

Source: Statistics New Zealand Household Labour Force Survey

Summary

In New Zealand in the quarter ending June 2011, seasonally adjusted unemployment rates remained static at 6.5%, with seasonally adjusted unemployment numbers also remaining static at 154,000 [1]. During June 1987–2011, unemployment rates were higher for younger people (15–19 years > 20–24 years > 25–29 years > 35–39 years and 45–49 years) and those with no qualifications > school qualifications, or post school but no school qualifications > both post school and school qualifications, although there were no consistent gender differences for young people 15–24 years. During 2007(Q4)–2011(Q2) unemployment rates were higher for Māori and Pacific > Asian > European people. Unemployment rates increased for all ethnic groups during 2008 and 2009, but became more static during 2010–2011(Q2) for Māori, Pacific and European people. Rates for Asian people declined during 2010(Q3)–2011 (Q2).

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References

1. Statistics New Zealand. 2011. Hot Off the Press Household Labour Force Survey: June 2011 Quarter. http://www.stats.govt.nz accessed 14/09/11

2. Craig E, McDonald G, Adams J, et al. 2010. The Health of Pacific Children and Young People with Chronic Conditions and Disabilites in New Zealand. Dunedin: New Zealand Child and Youth Epidemiology Service.

3. Pedersen C, Madsen M. 2002. Parents' Labour Market Participation as a Predictor of Children's Health and Wellbeing: A Comparative Study in Five Nordic Countries. Journal of Epidemiology and Community Health 56(11) 861.

4. Solantaus T, Leinonen J. 2004. Children's Mental Health in Times of Economic Recession: Replication and Extension of the Family Economic Stress Model in Finland. Developmental Psychology 40(3) 412-29.

5. Bjarnason T, Sigurdardottir T. 2003. Psychological Distress During Unemployment and Beyond: Social Support and Material Deprivation Among Youth in Six Northern European Countries. Social Science and Medicine 56 973-85.

6. Statistics New Zealand. 2009. Hot of the Press: Household Labour Force Survey June 2009 Technical Notes.
http://www.stats.govt.nz/browse_for_stats/work_income_and_spending/Employment/HouseholdLabourForceSurvey_HOTPJun09qtr/Technical%20Notes.aspx accessed 18/09/2009.

 7. Statistics New Zealand. 2009. Gross Domestic Product: June 2009 Quarter Technical Notes.
http://www.stats.govt.nz/browse_for_stats/economic_indicators/GDP/GrossDomesticProduct_HOTPJun09qtr/Technical%20Notes.aspx accessed 29/09/2009