web analytics

NZ closes the gap with Aussie

Written By: - Date published: 9:30 am, January 15th, 2010 - 21 comments
Categories: national/act government, unemployment - Tags: ,

Well, I didn’t think it could done but it has been. National has been promising to close the gap with Australia, and damned if it hasn’t happened already. The Nats’ target was 2025, it didn’t even take a year. In fact, we’re now above Australia and accelerating away while they fall.

Unfortunately, it’s the wrong gap.


(sources OECD, ABS)
For the previous nine years, New Zealand had consistently lower unemployment than Australia. We overtook them in June last year, and we’re still rising even as Australian unemployment falls.

Unemployment was always going to rise during the recession, of course. But it was not, and is not, beyond the government’s power to limit the increase.

The Rudd Government in Australia implemented a $42 billion green jobs package In February last year and immediately the rise in unemployment eased, so much so that it has now dropped from a peak of just 5.8% down to 5.5% in December.

The Key Government, in rather stark contrast, came up with…. a $50 million cycleway … only $3 million of which is so far allocated… to a project that was being built anyway.

And, so, with this magnificent neglect from the top, unemployment has climbed remorselessly upward bringing higher benefit costs, higher crime, and higher deficits from lower tax revenue.

Hmmm, maybe we should be copying the Aussies after all.

On February 2nd, we’ll learn whether National has successfully slept, grinned, dithered, and holidayed its way through a doubling in unemployment in its first year.

21 comments on “NZ closes the gap with Aussie ”

  1. Clarke 1

    Marty, I think you’ve got the wrong end of the stick – this isn’t high unemployment, this is “labour market flexibility”, in which case it’s a desired outcome of National government policy rather than an invidious social ill that needs to be treated.

  2. Peter Bilson 2

    Looks like it reached parity under Labour in Q2 2008.
    Maybe we need mines to increase our employment level & o’seas funds.

    • lprent 2.1

      Mines don’t employ many people, most of whom have quite specialized skills (that we don’t have here). They do however employ a lot of capital.

      So if you want an industry that does little for the NZ economy, pick one that requires that you import a lot of expats and capital, dig a hole in the ground, and where the capital, profits, and workers leave at the end of the project. Of course the hole remains and usually costs a bundle to fix later.

      The only nett gain to NZ is in lawyers fees. It is a fools game being pushed by a fool.

      Tourism is almost the exact opposite. It gives large benefits to both employment and capital retention, including being sustainable – but Brownlee is unable to understand this. I can’t see any economic benefits from increased mining in NZ for NZ over the medium to long term. I can see considerable costs to NZ especially if it reduces our tourism.

      Looks like you are as thick as Brownlee is…

    • snoozer 2.2

      No Peter, follow the sources that Marty has provided, or look with your eyes:

      In Q2 2008, NZ unemployment was 3.9%, Aust unemployment was 4.2%.

      And the point isn’t to criticise the fact that unemployment rose, it’s the fact that unemployment has been allowed to continue to rise well above what happened in Australia.

    • Tigger 2.3

      Peter – yes, by all means let’s blame Labour for this…since they haven’t been in power for the past fourteen months. But no, it’s Helen’s fault clearly.

    • Macro 2.4

      Just a few little problems with mining Peter – one of which is that NZ actually doesn’t make Billions from it. It’s the companies who do the mining who make the money – if any is to be made – the govt get 10% in royalties. So no we wont increase our overseas funds with mining.
      Makes you wonder why we bother really.
      Oh yeah! Browlee’s mates tell him its a great idea!

  3. Zaphod Beeblebrox 3

    Wow this happened despite the success of the jobs’ summit. Obviously their cycleway is better than ours.

  4. gitmo 4

    What happened 2000-01 in Australia to cause the spike ?

    Moderation ?

  5. burt 5

    Well if the failed policies of the 90’s was top blame for all bad things in 1999-2008 then the failed policies of 1999-2008 are shown in their fully ugliness on this graph.

    The second point that is worth noting is; How can it be possible that Dr Cullen was right when he said Labour left the economy in good shape compared to the rest of the world when we have had a much harder hit than Aussie?

    • lprent 5.1

      burt – you’re just outright weird sometimes.

      Do you think that falling unemployment is a bad thing? Because from Q1 2000 to Q1 2008 that is what is displaying. You’d prefer to pay unemployment benefits rather than getting people into work and paying taxes instead?

    • burt 5.2

      I never though of falling unemployment as a failed policy of the 90’s – but I guess a fully employed workforce ain’t gonna vote for more welfare so it must have been bad by Labour standards.

      Actually lprent – you highlight a very valid point; the failed policies of the 90’s were just the bad things eh because Labour policy instantly trumped National policy on the good stuff and only the bad stuff was National’s fault. Just like today eh, the rising unemployment has nothing to do with Labour causing a recession in NZ before the rest of the world… it’s the National govt elected sometime after the turning point caused by Labour that made it real bad.

      • Macro 5.2.1

        “I never though of falling unemployment as a failed policy of the 90’s”
        burt there wasn’t any falling unemployment in the 90’s! Unemployment remained pretty static at around 6 to 8 percent for the decade, and we consistently over that period lost parity with Australia on pay. Don’t rewrite history to suit you ideology.
        And don’t give us the rubbish that it was Nats 90’s policy that flowed into the new century that lead to the drop in unemployment rates. That is just hogwash.

      • burt 5.2.2

        Macro

        http://www.socialreport.msd.govt.nz/paid-work/unemployment.html

        No socialist prerequisite for convincing people that socialism is good re-write of history required.

  6. Jared 6

    Marty, do you really think we can afford a stimulus package even a tenth of the size of Australia’s? And don’t spout a “we can’t afford not to”. Australia and NZ’s labour markets are far different, and its not simply an exponential increase or decrease factor in scale. We were hit hard by the recession, but to say it is the fault of National is simply unfair. We cannot afford a stimulus package the size of Australias or the US for that matter.

  7. Macro 7

    Jared
    There is a difference between nothing and something.
    The NActMP govt have decided to do nothing. Oops sorry they decided to make their “stimulus package” a tax break for the rich – which as we all know went straight into the bank to pay of Mortgages or in Savings. Which of course is highly stimulatory.
    Now had Bill not been so generous to those who don’t need it, he might have been able to throw a few dollars in the direction of projects that were really stimulatory. – but his self interested mates made him chose otherwise.

    • burt 7.1

      Oops sorry they decided to make their “stimulus package’ a tax break for the rich

      So the fact we still have one of the lowest “wealth tax” thresholds of any OECD country is still beyond your grasp. Tell us again how we should increase wages in NZ and tell us again how with low wealth thresholds that is so beneficial to the workers rather than just the govt revenue for redistribution and buying elections with bribes.

      • Pascal's bookie 7.1.1

        yawn.

        If we had a tax free zone up to 15K, and a 25% rate for every dollar over that, we would have an even lower “wealth tax threshold”.

        It’s just sophistry burt. “Wealth tax threshold”. pffft.

  8. tsmithfield 8

    I wouldn’t get to confident in Australia just yet. They have been experiencing a boom due to China’s stockpiling of commodities. Well, all good things have to come to an end. China has just started reigning in its booming economy, so don’t expect that the gravy train will go on forever.

    http://online.wsj.com/article/BT-CO-20100115-702054.html?mod=rss_Currencies

Links to post

Recent Comments

Recent Posts

  • Counter-Terrorism Legislation Bill returns to Parliament
    The Counter-Terrorism Legislation Bill has returned to Parliament for its second reading in an important step towards giving enforcement agencies greater power to protect New Zealanders from terrorist activity. “The Bill addresses longstanding gaps in our counter terrorism legislation that seek to protect New Zealanders and make us safer,” Justice ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Joint Statement: New Zealand and Australian Trade Ministers
    Hon Damien O'Connor MP, New Zealand Minister for Trade and Export Growth, and Hon Dan Tehan MP, Australian Minister for Trade, Tourism and Investment, met virtually on Monday 20 September to advance trans-Tasman cooperation under the Australia-New Zealand Closer Economic Relations Trade Agreement (CER). CER is one of the most ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Prime Minister’s Post Cabinet Press Conference/COVID-19 Update opening statement
    ***Please check against delivery***   E te tī, e te tā, nau mai rā [To all, I bid you welcome]   As you will have seen earlier, today there are 22 new community cases to report; three of which are in Whakatiwai in the Hauraki area, and the remainder in ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Major milestones for Māori COVID-19 vaccine rollout as new campaign launches
    Whānau Ora and Associate Health (Māori Health) Minister Peeni Henare acknowledges two major milestones in the rollout of the COVID-19 vaccination programme for Māori. “I am very pleased to announce more than 50 percent of eligible Māori have received their first dose and 25 per cent are now fully vaccinated,” ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government funding to fight infectious diseases
    $36 million for research into Covid-19 and other infectious diseases The investment will improve our readiness for future pandemics Research will focus on prevention, control, and management of infectious diseases The Government’s investing in a new Infectious Diseases Research Platform to boost Aotearoa New Zealand’s Covid-19 response and preparedness for ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Quarantine-free travel with Australia to remain suspended for a further 8 weeks
    Suspension to be reviewed again mid to late November Decision brought forward to enable access from Australia to first tranche of around 3000 rooms in MIQ Air New Zealand working at pace to put on more flights from Australia from October    The suspension of quarantine-free travel (QFT) with Australia has ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Extra support for Ethnic Communities to share vaccination information
    Extra support is being made available to Ethnic Communities to help them share COVID-19 vaccination information within their communities, Minister for Diversity, Inclusion and Ethnic Communities Priyanca Radhakrishnan said. “We know we need to get every eligible person in New Zealand vaccinated. A fund being launched today will allow for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • School holidays remain unchanged for Auckland region
    School holidays in Auckland will continue to be held at the same time as the rest of the country, starting from Saturday, 2 October, Education Minister Chris Hipkins said today. “I’ve carefully considered advice on the implications of shifting the dates and concluded that on balance, maintaining the status quo ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government continues crackdown on gangs and organised crime
    Operation Tauwhiro extended until March 2022 Since it was launched in February, Operation Tauwhiro has resulted in:   987 firearms seized $4.99 million in cash seized 865 people charged with a firearms-related offence Gangs and organised crime groups will continue to be relentlessly targeted with the extension of Police’s successful ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to Body Positive 'HIV Treatments Update Seminar 2021'
    E ngā mana E ngā reo E ngā iwi Tēnā koutou katoa Ka huri ki ngā mana whenua o te rohe nei. Tēnā koutou. He mihi hoki ki a tatou kua tau mai nei I raro I te kaupapa o te rā. Nō reira tēnā koutou katoa Acknowledgements It’s a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Power bill changes bring fairness to charges
    A key recommendation of an independent panel to make electricity charges fairer across all households will be put in place, the Energy and Resources Minister Megan Woods has announced. “Phasing out the regulations on ‘low-use’ electricity plans will create a fairer playing field for all New Zealanders and encourage a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ economy’s strong momentum will support rebound from Delta outbreak; COVID fund replenished
    The economy showed strong momentum in the period leading up to the recent Delta COVID-19 outbreak, which bodes well for a solid economic rebound, Grant Robertson said. GDP rose 2.8 percent in the June quarter, following on from a 1.4 percent increase in the previous March quarter. This was a ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Projects create benefits into the future
    Making a well-known lake swimmable and helping to halt the decline of the endangered hoiho/yellow-eyed penguins are among a suite of new projects being supported by the Government’s Jobs for Nature programme across the southern South Island, Conservation Minister Kiri Allan says. “It’s no secret that many of our most ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Opening statement for Whāriki Indigenous Small Business Roundtable
      Kei ngā tōpito e wha o te āo e rere ana te mihi maioha ki a koutou nō tawhiti, nō tata mai e tāpiri ana ki tēnei taumata kōrero mo te ao hokohoko arā mā ngā pākihi mo ngā iwi taketake Tēnā koutou, tēnā koutou katoa – Pai Mārire.  ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New members appointed to Kāpuia
    The Government is adding four additional members to Kāpuia, the Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “I’m looking forward to having Pamela MacNeill, Huia Bramley, Melani Anae and Katherine Dedo  join Kāpuia and contribute to this group’s ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Timeline confirmed for Emissions Reductions Plan
    Cabinet has agreed to begin consulting on the Emissions Reduction Plan in early October and require that the final plan be released by the end of May next year in line with the 2022 Budget, the Minister of Climate Change, James Shaw confirmed today. “Cabinet’s decision allows organisations and communities ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pay parity pathway for early learning teachers confirmed
    Pay parity conditions and higher funding rates for education and care services will come into force on 1 January, 2022, Minister of Education Chris Hipkins confirmed today. The Government signalled this work in Budget 2021. “From 1 January, 2022, centres opting into the scheme will receive government funding and be ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to the New Zealand Nurses Organisation Conference 2021
    Kia Ora tatau katoa.   Ka tuku mihi ki nga nēhi, He pou Hauora o Aotearoa, E ora ai tatou.   Whakatau mai  I runga i te kaupapa o te ra Te NZNO conference.   Tena koutou tena koutou Tena tatou katoa   Good morning, and thank you inviting me ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government investment in farmer-led catchment groups sweeps past 150 mark
    171 catchment groups have now been invested in by the Government 31 catchment groups in the Lower North Island are receiving new support More than 5,000 farmers are focussed on restoring freshwater within a generation through involvement in catchment groups  Government investment in on-the-ground efforts by farmers to improve land ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Fight to protect kauri on track
    The Government is pitching in to help vital work to protect nationally significant kauri forests in Auckland, Minister of Conservation Kiri Allan says. “Ensuring the survival of these iconic trees for future generations means doing everything we can to prevent the potential spread of kauri dieback disease,” Kiri Allan said. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Joint statement of Mr Bernard Monk; Hon Andrew Little, Minister Responsible for Pike River Re-entry,...
    [Note: The Parties have agreed on terms to fully and finally settle the proceeding and will jointly issue the below statement.] At the heart of this litigation are the lives of the 29 men tragically lost at the Pike River mine on 19 November 2010 and to whom we pay ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More financial support for businesses
    Today’s decision to keep Auckland in a higher COVID Alert Level triggers a third round of the Wage Subsidy Scheme which will open for applications at 9am this Friday. “The revenue test period for this payment will be the 14th to the 27th of September. A reminder that this is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Aotearoa New Zealand provides further humanitarian support for Afghanistan
    Aotearoa New Zealand is providing a further $3 million in humanitarian assistance in Afghanistan, Foreign Minister Nanaia Mahuta announced today.  “There is significant humanitarian need in Afghanistan, with the crisis disproportionately affecting women and girls,” said Nanaia Mahuta. The UN has estimated that 80% of the quarter of a million ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Innovative te reo prediction tool announced in Te Wiki o Te Reo Māori
    A new Māori language prediction tool will play a key role in tracking our te reo Māori revitalisation efforts, Minister for Māori Development Willie Jackson announced today. He Ara Poutama mō te reo Māori (He Ara Poutama) can forecast the number of conversational and fluent speakers of te reo Māori ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further Government support for people to access food and essential items
    The Government is responding to need for support in Auckland and has committed a further $10 million to help people access ongoing food and other essential items, Minister for Social Development Carmel Sepuloni announced today. This latest tranche is targeted at the Auckland region, helping providers and organisations to distribute ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Half a million Pfizer vaccines from Denmark
    The Government has secured an extra half a million doses of Pfizer COVID-19 vaccines from Denmark that will start arriving in New Zealand within days, Prime Minister Jacinda Ardern announced today. “This is the second and larger agreement the Government has entered into to purchase additional vaccines to meet the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Inland Revenue providing essential COVID support for businesses
    Inland Revenue is seeing increased demand for Resurgence Support Payments and other assistance schemes that it administers, but is processing applications quickly, Revenue Minister David Parker said today. David Parker said the Resurgence Support Payment, the Small Business Cashflow (loan) Scheme and the Wage Subsidy are available at the same ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand marks 20th anniversary of 9/11 attacks
    New Zealand is expressing unity with all victims, families and loved ones affected by the September 11 2001 terrorist attacks, and all terrorist attacks around the world since, including in New Zealand. “Saturday marks twenty years since the 9/11 terrorist attacks in the United States, which killed nearly 3,000 people ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Speech to SPREP Environment Ministers
    Talofa Honourable Ulu of Tokelau Faipule Kelihiano Kalolo Tēnā koutou katoa and warm Pacific greetings from Aotearoa to your excellencies, ladies and gentlemen. The new science released by the Intergovernmental Panel on Climate Change on 8 August paints an alarming picture of the projected impacts of climate change on the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional Resurgence Support Payments to support business
    Businesses affected by higher Alert Levels will be able to apply for further Resurgence Support Payments (RSP). “The Government’s RSP was initially intended as a one-off payment to help businesses with their fixed costs, such as rent. Ministers have agreed to provide additional payments to recognise the effects of an ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • More Dawn Raids scholarships announced
    Details of the ‘Manaaki New Zealand Short Term Training Scholarships’, a goodwill gesture that follows the Government’s apology for the Dawn Raids of the 1970s, were released today by Pacific Peoples Minister Aupito William Sio. “These scholarships that are targeted to the Pacific will support the kaupapa of the Dawn Raids’ ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • One-way quarantine-free travel for RSE workers starting in October
      One-way quarantine-free travel for Recognised Seasonal Employer (RSE) workers from Samoa, Tonga and Vanuatu starts in October New requirement for RSE workers to have received their first vaccination pre-departure, undertake Day 0 and Day 5 tests, and complete a self-isolation period of seven days, pending a negative Day 5 ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt boosts Pacific suicide prevention support
    Applications have opened for the Pacific Suicide Prevention Community Fund as the Government acts to boost support amid the COVID delta outbreak. “We know strong and connected families and communities are the most important protective factor against suicide and this $900,000 fund will help to support this work,” Health Minister ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt parks the expiry of licenses, WoFs and regos
    As a result of the Delta outbreak, driver licences, Warrants of Fitness (WoFs), Certificates of Fitness (CoFs), vehicle licences (‘regos’) and licence endorsements that expired on or after 21 July 2021 will be valid until 30 November 2021, Transport Minister Michael Wood has announced today. “While this extension won’t officially ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • COVID-19 community fund to provide support for vulnerable women and girls
    Minister for Women Jan Tinetti today announced a $2 million community fund that will provide support for women and girls adversely affected by COVID-19. “We know that women, particularly those who are already vulnerable, are disproportionally affected by the kind of economic disruption caused by COVID-19,” Jan Tinetti said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Next phase of support for Fiji’s COVID-19 response announced
    A further NZ$12 million of support for Fiji’s COVID-19 response has been announced by Foreign Minister Hon Nanaia Mahuta today. The package builds on previous tranches of assistance Aotearoa New Zealand has provided to Fiji, totalling over NZ$50 million. “Fiji remains in a very challenging position in their response to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Robotic asparagus harvester aimed at addressing industry challenges
    The Government is backing a $5 million project to develop a commercial-scale autonomous robotic asparagus harvester, Agriculture Minister Damien O’Connor announced today. The Sustainable Food and Fibre Futures fund (SFF Futures) is contributing $2.6 million to the project. Project partner Robotics Plus Limited (RPL) will build on a prototype asparagus ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional Pfizer vaccines to arrive tomorrow
    More than a quarter of a million additional doses of the Pfizer vaccine are on their way from Spain to New Zealand, Prime Minister Jacinda Ardern announced today. The additional doses will arrive in Auckland on Friday morning to help meet the current surge in demand for vaccination. “It’s been ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Young people to have their voices heard in Youth Parliament 2022
    The dates and details for Youth Parliament 2022 have been announced today by Minister for Youth Priyanca Radhakrishnan, and the Speaker of the House of Representatives. Youth Parliament is an opportunity for 141 young people from across Aotearoa New Zealand to experience the political process and learn how government works. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Boosting support for tertiary students affected by COVID-19
    Students facing a hard time as a result of COVID-19 restrictions will continue to be supported,” Education Minister Chris Hipkins confirmed today. The Government is putting a further $20 million into the Hardship Fund for Learners, which will help around 15,000 students to stay connected to their studies and learning. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago