Luxon Government's Economic Policies Cripple Labour Market, NZCTU Report Reveals

A new report from the New Zealand Council of Trade Unions (NZCTU) reveals a stark decline in the country's labour market over the past three years. Unemployment has risen from 3.7 percent in June 2023 to 5.6 percent, with around 171,000 people out of work, an increase of almost 40 percent since the Luxon Government took office.

Long-term unemployment has skyrocketed by 150 percent in three years, and more than 40 percent of unemployed individuals have been searching for work for six months or longer. The report highlights that around 440,000 people are underutilized, the highest number since this data was collected.

NZCTU President Sandra Grey emphasizes that 'behind every one of these numbers is someone who wants to work and can't find a job.' She adds that hundreds of thousands of Kiwis have lost the security of a steady income, with many stuck without work for months or even years.

The report attributes this decline to the Reserve Bank's decision to hold the Official Cash Rate at 5.5 percent for a full year and the Luxon Government's cuts to public services, refusal to support struggling industries like construction, and cuts to apprenticeships, all of which were made during a time when working people needed help.

The impact has been particularly severe on Māori and Pacific workers and young people. Since 2023, unemployment among Māori individuals has risen from 6.5 percent to 11 percent, while it has doubled from 6 percent to 12 percent for Pacific Peoples. Youth unemployment has climbed from around 9 percent to 16.6 percent.

The NZCTU calls on the next Government to make full employment an overarching goal and reform the Reserve Bank's mandate to prioritize employment alongside price stability. It also advocates for increased public investment in housing, infrastructure, and regional development, as well as the reinstatement of fees-free study and Apprenticeship Boost.