Henare Tau: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHenare Tau: Questions for Oral Answer — Questions to Ministers[Sitting date: 06 November 2013. Volume:694;Page:14394. Text is incorporated into the Bound Volume.]3.Hon TAU HENARE (National) to theMinister of Finance: What reports has he received on the economy—and especially on further signs of improving economic momentum and increasing business and consumer confidence?Hon STEVEN JOYCE (Associate Minister of Finance) on behalf of theMinister of Finance: I have received a number of reports providing further evidence of good momentum in the New Zealand economy and of improving confidence. For example Treasury this week issued its monthlyEconomic Indicators outlook for October. It said that the positive outlook for the economy was reinforced by the latest trade data which confirmed that the recovery from last summer’s drought is under way. It also highlighted rising net migration inflows buoyant business sentiment in the September quarter and other surveys reporting increases in confidence and activity. The Government is supporting these positive developments through its economic programme and especially through the Business Growth Agenda which is focused on creating the conditions for businesses to invest grow and create new jobs.Hon Tau Henare: What does Treasury’s monthlyEconomic Indicators report say about business confidence among New Zealand firms and their intentions to hire more workers?Hon STEVEN JOYCE: Treasury says that business confidence in the economic outlook has risen to the highest level in many years. It pointed to the Quarterly Survey of Business Opinion from the New Zealand Institute of Economic Research which showed that firms experienced an improvement in their own activity over the September quarter and that even more businesses believed that activity would increase further in the December quarter. The survey reported modest employment growth but hiring intentions were rising strongly and are positive. Activity in the manufacturing sector in particular continues to increase. This is supported by ongoing strong numbers in the Performance of Manufacturing Index.Hon Tau Henare: How is the higher business confidence being reflected in other economic indicators especially in respect of the employment markets?Hon STEVEN JOYCE: The household labour force survey and the quarterly employment survey both came out today. They confirmed that increased business confidence is being translated into more jobs and higher employment. The household labour force survey showed that employment was up by 1.2 percent in the quarter. As an annual figure that is 53000 more people in work or a 2.4 percent increase for the year. At the same time unemployment dropped from 6.4 percent to 6.2 percent. Obviously we are very keen to see that come down further but the trend is encouraging and better than in many other developed countries around the world. It is also pleasing that the Māori employment rate rose over the year. It is now also worth noting that the “neets” rate—that is young people not in education employment or training—fell over the quarter from 12.1 percent to 11.4 percent which is the lowest level since December 2008 before the global financial crisis.Hon Tau Henare: What do official employment statistics show about recent movements in incomes relative to the cost of living and how is this assisting families to get ahead?Andrew Little: Real wages are stagnant.Hon STEVEN JOYCE: I know I am going to disappoint Mr Little who is always talking the place down. The quarterly employment survey shows that average ordinary time hourly earnings rose 2.6 percent over the year and were up from 2.1 percent in the previous quarter. This compares with inflation of 1.4 percent for the year meaning that people in work—and there are more of them—have the conditions to make steady and consistent gains in their incomes. Adding in a long run of low mortgage interest rates these are very helpful conditions for families and households to get ahead. It is also worth noting that not only are average hourly earnings up but the number of hours being worked has increased as well. Paid hours are up by 2.7 percent over the year. Theseimproving figures flow from careful Government policies that support growth and jobs being translated into real-world situations for New Zealand families.