Unemployment hits 15-year high in NZ

The number of unemployed people in New Zealand reached the highest level in more than 15 years.

New figures from Statistics New Zealand issued on Thursday showed the number of people out of work increased by 12,000 or 9 percent during the September quarter to reach 150,000.

The unemployment rate rose to a nine-year high of 6.5 percent in the September quarter, from 6 percent in the previous three months.

The rise in the unemployment rate was slightly above expectations, with the media forecast in a Reuters poll of economists having been for a rise to 6.4 percent.

The unemployment rate has been rising from a low of 3.5 percent in the December 2007 quarter.

Over the past year, employment in the manufacturing retail and accommodation and construction industries have shown notable falls.

New Zealand Social Development and Employment Minister Paula Bennett issued a statement on Thursday saying that the unemployment numbers were "in line with what was expected."

"Yes, New Zealand has come out of recession. But unemployment tends to lag behind an economy getting back on its feet. Recent forecasts though have unemployment peaking closer to 7 percent, instead of the 8 percent forecast in the budget," according to New Zealand Herald.

There had been a drop in the number of people requiring an unemployment benefit -- in September there were 60,600, and 59,955 in October.

The percentage of working age people on an unemployment benefit was 2.1 percent in New Zealand, compared to Australia's 4.5 percent using the latest available data, said Bennett.

Source:Xinhua