The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today.
Last quarter's unemployment rate of 5.3 percent followed the largest increase observed in a single quarter since the series began in 1986.
Before the September 2020 quarter, the unemployment rate had been trending downwards from a peak rate of 6.7 percent in the September 2012 quarter. The December 2020 quarter's rate of 4.9 percent is a return to rates observed over three years ago, when the unemployment rate was also 4.9 percent in the March 2017 quarter.
"The effects of COVID-19 on the labour market were apparent in the September quarter, with a sharp increase in unemployment. Despite the December quarter's drop, unemployment is still higher than it has been in a few years. This time last year, the unemployment rate was at 4.1 percent," work, wealth and wellbeing senior manager Becky Collett said.
| Quarter | Men | Women | Total |
| Dec-05 | 3.2 | 4.4 | 3.7 |
| Mar-06 | 3.8 | 4.4 | 4.1 |
| Jun-06 | 3.3 | 4.1 | 3.7 |
| Sep-06 | 3.6 | 4.2 | 3.9 |
| Dec-06 | 3.5 | 4.1 | 3.8 |
| Mar-07 | 3.6 | 4.2 | 3.9 |
| Jun-07 | 3.3 | 4 | 3.6 |
| Sep-07 | 3.2 | 3.9 | 3.6 |
| Dec-07 | 3.3 | 3.4 | 3.4 |
| Mar-08 | 3.6 | 4 | 3.8 |
| Jun-08 | 3.8 | 3.8 | 3.8 |
| Sep-08 | 4.1 | 4 | 4.1 |
| Dec-08 | 4.3 | 4.6 | 4.4 |
| Mar-09 | 5.1 | 4.9 | 5 |
| Jun-09 | 5.6 | 6 | 5.8 |
| Sep-09 | 6.3 | 6 | 6.2 |
| Dec-09 | 6.6 | 6.5 | 6.6 |
| Mar-10 | 5.6 | 6.3 | 5.9 |
| Jun-10 | 6.7 | 6.5 | 6.6 |
| Sep-10 | 5.6 | 6.6 | 6.1 |
| Dec-10 | 6 | 6.5 | 6.2 |
| Mar-11 | 5.7 | 6.4 | 6 |
| Jun-11 | 6 | 6.1 | 6.1 |
| Sep-11 | 5.6 | 6.3 | 6 |
| Dec-11 | 6.1 | 6 | 6.1 |
| Mar-12 | 6.1 | 6.7 | 6.4 |
| Jun-12 | 6.2 | 6.7 | 6.4 |
| Sep-12 | 6.6 | 6.9 | 6.7 |
| Dec-12 | 6 | 6.7 | 6.3 |
| Mar-13 | 5.2 | 6.5 | 5.8 |
| Jun-13 | 5.5 | 6.5 | 6 |
| Sep-13 | 5.5 | 6.2 | 5.8 |
| Dec-13 | 5 | 6.4 | 5.7 |
| Mar-14 | 5.1 | 6.1 | 5.6 |
| Jun-14 | 4.6 | 6 | 5.3 |
| Sep-14 | 4.6 | 6.1 | 5.3 |
| Dec-14 | 4.8 | 6.3 | 5.5 |
| Mar-15 | 5.2 | 5.9 | 5.5 |
| Jun-15 | 4.8 | 6.3 | 5.5 |
| Sep-15 | 5.3 | 6.1 | 5.7 |
| Dec-15 | 4.7 | 5.3 | 5 |
| Mar-16 | 5 | 5.6 | 5.3 |
| Jun-16 | 4.7 | 5.5 | 5.1 |
| Sep-16 | 4.7 | 5.3 | 5 |
| Dec-16 | 4.8 | 5.8 | 5.3 |
| Mar-17 | 4.3 | 5.6 | 4.9 |
| Jun-17 | 4.7 | 4.9 | 4.8 |
| Sep-17 | 4.1 | 5.4 | 4.7 |
| Dec-17 | 4 | 5.1 | 4.5 |
| Mar-18 | 4 | 4.8 | 4.4 |
| Jun-18 | 4.3 | 4.8 | 4.5 |
| Sep-18 | 4 | 4 | 4 |
| Dec-18 | 4.4 | 4.2 | 4.3 |
| Mar-19 | 3.9 | 4.5 | 4.2 |
| Jun-19 | 3.7 | 4.3 | 4 |
| Sep-19 | 3.8 | 4.5 | 4.2 |
| Dec-19 | 3.8 | 4.3 | 4.1 |
| Mar-20 | 4.1 | 4.4 | 4.2 |
| Jun-20 | 3.6 | 4.5 | 4 |
| Sep-20 | 4.8 | 5.8 | 5.3 |
| Dec-20 | 4.5 | 5.4 | 4.9 |
The seasonally adjusted number of unemployed people fell by 10,000 in the December 2020 quarter, to 141,000. The decrease was split evenly between men and women - the number for both fell by 5,000.
Despite this quarterly fall, the number of unemployed people is still 25,000 higher than it was a year ago, increasing from 116,000 in the December 2019 quarter (a rise of 21.9 percent). The annual increase was 15,000 for women and 11,000 for men.
The number of people not in the labour force (NILF) fell by 3,000 over the quarter.
Employment up, but annual growth is modest
The seasonally adjusted number of employed people rose by 17,000 over the December 2020 quarter. This follows falls in the previous two quarters of the household labour force survey (HLFS), by 7,000 in the June 2020 quarter, and 19,000 in the September 2020 quarter.
Feelings of job security have improved since the September 2020 quarter, with 79.1 percent of people in December 2020 quarter saying there was almost no chance or a low chance that they would lose their job or business in the next 12 months, compared with 74.3 percent in the previous quarter.
Since the December 2019 quarter, the number of seasonally adjusted employed people had a small increase of 19,000 (0.7 percent). This annual growth is lower than seen in recent pre-COVID years.
| Quarter | Percentage change |
| Dec-05 | 1.7 |
| Mar-06 | 2.8 |
| Jun-06 | 3.3 |
| Sep-06 | 1.7 |
| Dec-06 | 1.6 |
| Mar-07 | 1.8 |
| Jun-07 | 1.4 |
| Sep-07 | 1.5 |
| Dec-07 | 2.2 |
| Mar-08 | 1.1 |
| Jun-08 | 0.5 |
| Sep-08 | 0.7 |
| Dec-08 | 0.7 |
| Mar-09 | -1.3 |
| Jun-09 | -1.1 |
| Sep-09 | -2.1 |
| Dec-09 | -2.6 |
| Mar-10 | -0.5 |
| Jun-10 | -0.3 |
| Sep-10 | 1.5 |
| Dec-10 | 1 |
| Mar-11 | 1.6 |
| Jun-11 | 1.8 |
| Sep-11 | 1 |
| Dec-11 | 1.4 |
| Mar-12 | 0.6 |
| Jun-12 | 0.4 |
| Sep-12 | -0.2 |
| Dec-12 | 0 |
| Mar-13 | 0.1 |
| Jun-13 | 0.5 |
| Sep-13 | 2.5 |
| Dec-13 | 3.1 |
| Mar-14 | 4 |
| Jun-14 | 3.9 |
| Sep-14 | 3.4 |
| Dec-14 | 3.9 |
| Mar-15 | 3.6 |
| Jun-15 | 3.3 |
| Sep-15 | 1.8 |
| Dec-15 | 1.7 |
| Mar-16 | 2.3 |
| Jun-16 | 4.8 |
| Sep-16 | 6.2 |
| Dec-16 | 6 |
| Mar-17 | 5.9 |
| Jun-17 | 3.1 |
| Sep-17 | 4.1 |
| Dec-17 | 3.7 |
| Mar-18 | 2.9 |
| Jun-18 | 3.7 |
| Sep-18 | 2.7 |
| Dec-18 | 2.2 |
| Mar-19 | 1.5 |
| Jun-19 | 1.4 |
| Sep-19 | 1 |
| Dec-19 | 1.3 |
| Mar-20 | 2.6 |
| Jun-20 | 1.7 |
| Sep-20 | 0.4 |
| Dec-20 | 0.7 |
Government tax data from the monthly employment indicators series also showed strong job growth in the month of December, but slow annual growth overall. Jobs up in December but annual growth slows has more information.
"Overall employment has increased since last year, but not all industries have fared evenly in that time with construction up, and tourism-related industries down," Ms Collett said.
High rises in construction jobs has more information about industry growth in the December 2020 quarter.
The employment rate was 66.8 percent in the December 2020 quarter, compared with 66.4 percent in the September 2020 quarter, and 67.6 percent in December 2019 quarter.
"Although the employment rate is lower than a year ago, New Zealand currently has the fifth highest employment rate amongst 15-64-year-olds of all the OECD countries," Ms Collett said.
| Quarter | Men | Women | Total |
| Dec-05 | 72.7 | 58.3 | 65.3 |
| Mar-06 | 72.8 | 58.9 | 65.6 |
| Jun-06 | 73 | 59.2 | 65.9 |
| Sep-06 | 72.8 | 58.6 | 65.5 |
| Dec-06 | 72.9 | 58.2 | 65.3 |
| Mar-07 | 72.9 | 59.2 | 65.8 |
| Jun-07 | 73 | 59.5 | 66 |
| Sep-07 | 73.2 | 58.7 | 65.7 |
| Dec-07 | 72.8 | 59.8 | 66.1 |
| Mar-08 | 72.6 | 59.5 | 65.8 |
| Jun-08 | 72.3 | 59.6 | 65.7 |
| Sep-08 | 71.8 | 59.8 | 65.6 |
| Dec-08 | 72.4 | 59.9 | 65.9 |
| Mar-09 | 70.6 | 58.8 | 64.5 |
| Jun-09 | 70.8 | 58.3 | 64.3 |
| Sep-09 | 69.2 | 58.2 | 63.5 |
| Dec-09 | 69.3 | 57.8 | 63.3 |
| Mar-10 | 69.6 | 57.6 | 63.4 |
| Jun-10 | 69.3 | 57.6 | 63.3 |
| Sep-10 | 70.3 | 57.6 | 63.7 |
| Dec-10 | 69.4 | 57.5 | 63.3 |
| Mar-11 | 69.9 | 58.1 | 63.8 |
| Jun-11 | 69.7 | 58.3 | 63.8 |
| Sep-11 | 70.1 | 58 | 63.9 |
| Dec-11 | 69.6 | 58.2 | 63.7 |
| Mar-12 | 69.8 | 58.1 | 63.7 |
| Jun-12 | 69.2 | 58.4 | 63.6 |
| Sep-12 | 68.7 | 58.3 | 63.3 |
| Dec-12 | 68.7 | 58.1 | 63.3 |
| Mar-13 | 68.9 | 58.1 | 63.3 |
| Jun-13 | 69.1 | 58.1 | 63.4 |
| Sep-13 | 69.9 | 58.8 | 64.1 |
| Dec-13 | 70.4 | 58.8 | 64.4 |
| Mar-14 | 70.6 | 59.3 | 64.8 |
| Jun-14 | 70.8 | 58.9 | 64.7 |
| Sep-14 | 70.6 | 59.6 | 64.9 |
| Dec-14 | 71 | 60.2 | 65.5 |
| Mar-15 | 71.2 | 60.2 | 65.6 |
| Jun-15 | 71.1 | 59.7 | 65.2 |
| Sep-15 | 70.1 | 59.1 | 64.5 |
| Dec-15 | 70.5 | 59.6 | 65 |
| Mar-16 | 70.7 | 60.2 | 65.3 |
| Jun-16 | 71.9 | 61.2 | 66.4 |
| Sep-16 | 72.4 | 61.1 | 66.6 |
| Dec-16 | 72.6 | 61.7 | 67 |
| Mar-17 | 73.2 | 61.8 | 67.4 |
| Jun-17 | 72.6 | 61.5 | 66.9 |
| Sep-17 | 73.5 | 62.4 | 67.9 |
| Dec-17 | 73.6 | 62.6 | 68 |
| Mar-18 | 73.3 | 62.8 | 68 |
| Jun-18 | 73.1 | 62.9 | 67.9 |
| Sep-18 | 73.2 | 63.4 | 68.3 |
| Dec-18 | 72.7 | 63.2 | 67.9 |
| Mar-19 | 72.5 | 62.9 | 67.6 |
| Jun-19 | 72.5 | 63.1 | 67.7 |
| Sep-19 | 72.6 | 63 | 67.7 |
| Dec-19 | 72.6 | 62.7 | 67.6 |
| Mar-20 | 72.7 | 62.8 | 67.7 |
| Jun-20 | 72.4 | 62 | 67.1 |
| Sep-20 | 71.8 | 61.2 | 66.4 |
| Dec-20 | 72.1 | 61.7 | 66.8 |
Seasonally adjusted filled jobs, as measured by the quarterly employment survey (QES), rose by 16,500 over the December 2020 quarter (0.8 percent increase), and 18,300 over the year (0.9 percent increase).
All three aspects of underutilisation drop this quarter
In the December 2020 quarter, the seasonally adjusted underutilisation rate dropped to 11.9 percent, down from 13.2 percent last quarter.
"Like unemployment, underutilisation had been trending downwards prior to COVID-19. So, although we have seen a quarterly fall, the rate is still higher than this time last year, when it was 10.1 percent," Ms Collett said.
All three components of underutilisation dropped since last quarter, with the biggest fall being 18,000 fewer underemployed people. The underemployed are those who work less than 30 hours a week, but would like to work more hours and have the availability to do so.
Text alternative for total underutilisation, December 2020 quarter, seasonally adjusted diagram
Wages grow
In the year to the December 2020 quarter, average ordinary time hourly earnings as measured by the QES increased to $34.14 (up 4.2 percent) as gross pay rose more sharply than paid hours.
The labour cost index (LCI) salary and wage rates (including overtime) increased 1.6 percent in the year to the December 2020 quarter, while unadjusted LCI increased 2.5 percent.
The LCI is often compared with the consumers price index (CPI) to see how wage inflation compares with consumer inflation (the change in prices of goods and services bought by households). Annual CPI inflation was 1.4 percent in the year to December 2020.
Average earnings increase as wage growth slows has more information on wages.
Text alternative for Total underutilisation, December 2020 quarter, seasonally adjusted diagram
Diagram shows data from December 2020 quarter's household labour force survey (HLFS).
The underutilisation rate was 11.9%, down 1.3pp (percentage points). This rate is derived from total underutilised divided by the extended labour force. The unemployment rate was 4.9%, down 0.4pp. This is derived from unemployed divided by labour force.
Total underutilised was down 39,000, to 352,000. Underemployed was down 18,000 to 116,000. Unemployed was down 10,000 to 141,000. The potential labour force was down 11,000 to 95,000.
Within the potential labour force, available potential jobseekers were down 13,800 to 74,700 and unavailable jobseekers were up 3,000 to 21,000.
Notes:
- No seasonal pattern is evident for available potential jobseekers. Therefore, this series is not seasonally adjusted.
- Due to rounding, changes do not always sum to the published totals.
Source: Stats NZ, household labour force survey
