Last week’s Household Labour Force Survey from Statistics New Zealand paints a worrying picture for many young New Zealanders.
The data shows that there more young people outside the labour force but in education.
In unadjusted terms, the youth labour force contracted over the year to June 2013, with 14,000 fewer youth in the labour force and a fall in participation. The labour force participation rate fell to 57.6 percent – its lowest level since the series began in 1986.
The minister for tertiary education, skills and employment, Steven Joyce welcomed these statistics as more evidence of a continued “trend of growing employment”.
The reason he said this is because the number of youth not in employment, education, or training (NEET) fell by 7,200 over the year. Despite having no jobs the number of NEETs fell because of a strong rise in the number of youth studying (up 12,200 or 6.4 percent).
Statistics NZ reports the seasonally adjusted NEET rate decreased 0.5 percentage points to 12.1 percent. This is the lowest NEET rate since the December 2008 quarter.
Overall, the unemployment rate rose by 5000 people in the last three months to 6.4 percent. The number of people employed across New Zealand grew by 8,000. However the number of people employed in Canterbury alone grew by over 16,000, suggesting that the rest of the country continues to experience growing unemployment.
TEU national president Lesley Francey says it is good to see young people without jobs in education or training.
“Enrolment for tertiary education always rises when there are no jobs. Hopefully there will be jobs for these young people by the time they finish their training though.”
Thanks to nChizu @ Flickr for the photo http://www.flickr.com/photos/51885378@N06/4874949737