Mark Smith: ASB Senior Economist on annual job growth hitting 0.9%

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The Mike Hosking Breakfast 2 min 2 speakers 5 chapters transcribed 1 hour ago
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What do New Zealand’s latest job growth figures show?

Mike Hosking 0:00
So on the upside for the economy is also the latest jobs report. Of course, we got Phil Jobs are up uh zero point two percent for August, zero point nine from a year ago. That's twenty thousand eight hundred more jobs, strongest number since early twenty four. South as your usual story one point six percent, north zero point five. Mark Smith is ASB senior economist and he's back with us. Mark, very good morning.
Mark Smith 0:19
Good morning Mike.
Mike Hosking 0:20
Zero point nine a thing. Do you look at that and go, Wow, not bad?

How broadly is New Zealand’s employment recovery growing?

Mark Smith 0:25
Uh it's off a low base, so I suppose it's the first thing. Um the numbers are improving though. And probably the key takeout is that the recovery is broadening through the regions and also through sectors.
Mike Hosking 0:36
Okay. Do you soak up and th this is the key to the headline I guess, are you soaking up is the twenty thousand just soaking up those who want it? Or is it making a material difference? And if it isn't making a material difference, how long before it does?
Mark Smith 0:48
Yeah, to some extent there is quite a lot of slack in the labour market.

Will rising labour demand bring New Zealand’s unemployment rate down?

Mark Smith 0:51
You know, the unemployment rate's five point six percent. The encouraging thing with today you know, yesterday's data was it shows that the demand for labour is still there. If it was not for the the Middle East conflict, the economy would be absolutely booming and jobs growth would be much stronger. But we we we'll take what we're given. But this really suggests that the unemployment rate, the direction from here will be downwards.

How are employment trends changing across Auckland and other regions?

Mike Hosking 1:12
Okay, so three point one in Southland, no surprise. Uh where's Auckland by the way? I couldn't find Auckland's number at the engine room of the economy.
Mark Smith 1:20
Yeah, recovering. Um up point six percent year on year, certainly lagging the the south, but the strongest is mid twenty twenty four. Wellington was actually up as well. Uh so yeah, s a rising tide lifts all boats. Um Auckland will be probably one of the last to feel it, but the signs are still encouraging. Things are things are certainly turning.
Mike Hosking 1:41
Fantastic. Good to talk to you. Appreciate your expertise. Mike Smith ASB senior economist with us this morning.

Which industries are driving job growth, including the public sector?

Mike Hosking 1:46
Uh the areas, the industries, thirteen of nineteen broad industries lifting. Two point two percent lift in health rolls. Ready for this? Three point eight percent rise in public sector. So I asked Prime Minister over a week ago how come ten percent in the job ads, ten percent pay rises year on year, he didn't know. And we also get the number of jobs three point eight percent. So the public sector which was getting cut it back is nothing of the sort.
Mark Smith 2:10
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