7 Aug 2014

Unemployment at lowest since 2009

8:49 am on 7 August 2014

Unemployment has fallen to its lowest level in more than five years, due to firms taking on more workers. But despite robust economic growth, pay rises remain muted.

Buoyed by the growing economy, firms are hiring more people. Employment rose by 0.4 percent to more than 2.33 million people.

Annual employment grew 3.7 percent - its fastest pace in a decade.

The rebuilding of earthquake-hit Christchurch is behind the this, and while analysts expect that pace to ease, the construction boom is expected continue to support job growth.

But wage growth remained subdued. It grew a modest 1.7 percent in the quarter, due mainly to an increase in the minimum wage, which put it barely above inflation of 1.6 percent.

Statistics New Zealand said if the 50 cent increase in the minimum wage was excluded, wages matched the rise in the cost of living.

Westpac senior economist Michael Gordon said rising immigration and low inflation was keeping a lid on pay.