According to Stats NZ, New Zealand had 27,850 fewer jobs in June compared to the previous year, with young people particularly affected by the sluggish labour market.
The number of filled jobs increased by 0.1% compared to the previous month but decreased by 1.2% compared to the same time last year.
Construction lost 12,169 jobs, a decrease of 6% compared to the previous year; manufacturing declined by 5,850 jobs (2.5%); professional, scientific, and technical services dropped by 5,150 jobs (2.7%); and administrative and support services fell by 4,860 jobs (4.7%).
People aged 15 to 19 experienced a 10% decrease in jobs, those aged 20 to 24 saw a 3.5% reduction, and individuals aged 25 to 29 had 3.9% fewer jobs.
ASB senior economist Mark Smith noted that in the past year or so, it has become clear that young people have been the most impacted by the labour market conditions.
He said the actual number of job losses was probably higher than what the data showed because some businesses would have hired new staff during the year, offsetting some of the job reductions. This implies that the net job figures might understate the full extent of job cuts in the market.
Smith also mentioned that the unemployment rate is expected to rise in the coming months.
Some individuals who lost their jobs have left the labour market, causing the participation rate to decline. The unemployment rate, however, only includes those actively seeking employment.
Ricardo Menendez-March, the Green Party spokesperson for social development and employment, urged the government to “take charge and create jobs that help us build a better future.”
“We know people out there need opportunities; instead, they are being punished and pushed into poverty,” he said.