1. Employment Rate—Participation Youth Unemployment and Building and Construction IndustryMAUREEN PUGH (National) to the Minister of FinanceTUESDAY 14 FEBRUARY 2017Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSEmployment Rate—Participation Youth Unemployment and Building and Construction Industry1. MAUREEN PUGH (National) to the Minister of Finance: How is the growing economy delivering jobs for New Zealanders?Hon STEVEN JOYCE (Minister of Finance): As this House will be aware the growing economy is not an end in itself but it is important for the opportunities it creates for New Zealanders. The recent household labour force survey shows that this is happening very strongly in the labour market. New Zealand now has its highest-ever employment rate of those people aged 15 years and over: 66.9 percent of people aged 15 and over are employed in this economy—that is the second-highest rate in the whole developed world. As a result of that more people have been encouraged to come into the workforce as shown by a record-high participation rate which at 70.5 percent is also now second in the whole developed world.Maureen Pugh: What else did the survey show about the strength of the labour market?Hon STEVEN JOYCE: The survey showed that over 2.5 million New Zealanders are in employment for the first time ever. It also showed that wages grew by 1.6 percent over the year taking the average annual wage to $58700. That was the fifth consecutive quarter where employment growth has exceeded population growth. The survey also showed strong growth in construction and retail trade and accommodation sectors with 10900 and 30300 more people employed in the past year in those two sectors respectively.Darroch Ball: How is the so-called growing economy delivering jobs for the 91000—or 13.6 percent of—15- to 24-year-olds who have no job are not in school or in any training which is now at its highest level in 4 years?Hon STEVEN JOYCE: As the member will know if he has read the survey Statistics New Zealand itself has cast out on that number because of the timing of the number and where it has occurred in relation to tertiary education participation. It has suggested that actually members and people reading the report look more closely at the subsequent quarters than at that one. Having said that the member raises a fair point in terms of the importance of encouraging opportunities for young people. I note that in the construction sector we have 10000 construction apprentices for the first time in New Zealand's history. In fact across a range of sectors the numbers of opportunities in work-based training and also in tertiary education continue to grow.Grant Robertson: In light of that answer can the Minister confirm that when we look at the same quarter's figures last year for those young people not in employment education or training (neets") it is up 19000 or 26 percent on the same quarter last year?Hon STEVEN JOYCE: I think the member just missed my answer to the previous question. He may recall because he railed against it so much that the survey was changed in the middle of last year. I remember him saying it was some sort of political activity that was occurring to make Statistics New Zealand change the survey. It was not political activity and Statistics New Zealand notes in that survey the need to be careful with those "neets" figures in the December quarter because of the impact potentially of tertiary education participation. But the member will also be pleased that industries like construction like tourism are providing lots of opportunities for young New Zealanders.Maureen Pugh: What impact is the building boom having on job growth in the construction industry?Hon STEVEN JOYCE: The member asks a good question. New Zealand is in the middle of its largest-ever building boom with the value of nationwide building consents reaching its highest level ever of $19 billion in 2016. Residential construction is a very big part of that reaching an all-time high of $10.6 billion in the year. The strong growth is shown by the increase in people employed in the construction sector—up 17000 in the last quarter alone reaching an all-time high of 242900 people employed in construction. To help meet the ongoing demand the Government is strongly backing employers and industry training organisations as they grow their apprenticeship and trainee numbers towards the Government's recently announced target of 50000 people in training and apprenticeships by 2020.Darroch Ball: Has the Minister stopped talking about how good those rates are due to the fact that almost 2000 young Kiwis every month are now being added to the list of those who have no job who are out of education and who are out of training?Hon STEVEN JOYCE: The member obviously did not listen to my answer to the earlier question which simply made the point that because the survey has changed Statistics New Zealand has indicated you should have caution. The recorded numbers of "neets" were at some of their lowest levels since the global financial crisis. It has gone up a little bit according to this survey but the way in which the question was asked about tertiary education may have had an impact on that.Maureen Pugh: What impact is the boom having on Auckland construction employment?Hon STEVEN JOYCE: It is interesting for members to know that job growth in the Auckland construction industry has reflected the strong growth in the wider construction industry especially in residential construction. This has seen the number of people employed in construction in Auckland reach a record high of 85800 in the most recent quarter of the household labour force survey. It is a very big increase on 3 years ago and far surpasses the previous peak measured by the household labour force survey which was 64000 during the mid-2000s. So now 85800 people are working in construction and that is one of the reasons why it is good to see the economy growing and delivering that job growth in our largest city.Grant Robertson: Can the Minister confirm that Statistics New Zealand's latest household expenditure survey shows that in the year to June last year average annual housing costs rose 11 percent whereas average annual household income rose 2 percent and that in the average household income after housing was less than $1 a day higher than it was the year before?Hon STEVEN JOYCE: I note that the question was about the growing economy delivering jobs for New Zealanders. I appreciate that the member is up to his reading where he has got to "E" in the expenditure survey but if he could catch up and get to the household labour force survey that would be useful.Rt Hon Winston Peters: Why is he boasting about people being employed when they go off the unemployment register and on to the employment register if they get just 1 hour's work a week?Hon STEVEN JOYCE: I appreciate that the member is speaking from personal experience—Rt Hon Winston Peters: I raise a point of order Mr Speaker. This Minister has begun every answer by challenging the listening ability of members of Parliament and now by being scathing. At least I do not think that "manual labour" is the Prime Minister of Mexico like he does.Mr SPEAKER: That was not a helpful point of order. Now we will return to the Minister if he wishes to continue his answer to the question.Hon STEVEN JOYCE: The member should go and have a look at the survey because it actually lays out the number of people in full-time employment and the number of people in part-time employment. So for example if you look at New Zealand compared with Australia we have much higher rates of full-time employment than Australia does which is one of the reasons why we get so many Kiwis returning home to New Zealand. If the member wants to put down a question in writing I will be more than happy to take him through the numbers but I can tell him that these are real jobs and it is not a matter of boasting; it is a matter of focusing on the important thing to Kiwis which is about getting jobs so they can bring up their families."