2. Job Creation and Unemployment—Statistics Methodologies Interpretation and TrendsMAUREEN PUGH (National) to the Minister of FinanceJob Creation and Unemployment—Statistics Methodologies Interpretation and Trends2. MAUREEN PUGH (National) to the Minister of Finance: What recent reports has he received on the New Zealand economy?Hon BILL ENGLISH (Minister of Finance): I am advised today that today was the first release by Statistics New Zealand of labour market statistics data using an updated survey method that is technology-neutral and improves international comparability. The decision to change the survey method was made by the Government Statistician who is statutorily independent. The decision was not made by the Government. Today's release shows unemployment fell by 0.1 percent to 5.1 percent with particularly large reductions in Auckland—down 1.2 percentage points to where unemployment in Auckland is now measured at 4.7 percent. Unemployment among women has dropped 0.8 percent to 5.4 percent. The survey also points to strong job growth during the quarter.Mr SPEAKER: Order! I am about to call Maureen Pugh but I do not want a continuation of the conversation between Mr Joyce and Mr Little.Maureen Pugh: What is the outlook for jobs and wages?Hon BILL ENGLISH: The outlook will be fairly positive if the current momentum is maintained. Statistics New Zealand calculates that 105000 extra jobs were created in the last year and 251000 over the last 3 years. It advises that recorded jobs growth is supported by other labour market indicators. It reports that annual average wages have increased 24.9 percent to more than $58000 since the end of 2008 more than double 12 percent inflation over the same period. There are more jobs and people are being better paid.Grant Robertson: Was ANZ correct when it said today: Due to methodological changes many of today's figures need to be taken with a grain of salt (particularly the surge in employment). Statistics NZ have cautioned against quarterly comparisons. In fact in many ways they look meaningless."?Hon BILL ENGLISH: ANZ has every right to have an opinion about the numbers as does the Government. However it refrains from attacking the impartiality of the Government Statistician.Grant Robertson: I raise a point of order Mr Speaker. [Interruption]Mr SPEAKER: Order! [Interruption] Order! Again this is a point of order the Hon Dr Nick Smith.Grant Robertson: My question asked the Minister of Finance whether ANZ was correct in that statement. I did not get an answer to that question.Mr SPEAKER: On this occasion—[Interruption] Order! On this occasion I think the question has been addressed. The Minister immediately said that that was ANZ's opinion.Maureen Pugh: What else do labour market statistics tell us about the job market?Hon BILL ENGLISH: The Government Statistician has introduced a new measure of underutilisation which has not been measured before. It measures the number of people who could work more if given the opportunity. The published underutilisation rate is 12.8 percent. This compares with the OECD average of around 14.1 percent and somewhat surprisingly compares with Australia's underutilisation rate of 21.8 percent which is not much short of double the New Zealand rate.Maureen Pugh: What other reports has he seen about the household labour force survey (HLFS)?Hon BILL ENGLISH: There are a range of reports about the economic importance of the data including some people who have questioned for instance quarterly comparisons because the HLFS data does move around from quarter to quarter. Others however have made comments around the impartiality of the Government Statistician including that the Government "actively manipulates official data" which is absolutely wrong—Mr SPEAKER: Order! There is no need for that answer to continue any longer. I consider it is an answer that will be in breach of Speaker's ruling 197/5.Grant Robertson: Why is the Government taking credit for a quarterly increase in employment that is 70 percent higher than ever recorded before which ANZ has said should be taken with a grain of salt and that Statistics New Zealand cautioned against making—exactly the quarterly comparison that Steven Joyce did in his media release today?Hon BILL ENGLISH: The Government is not taking credit; it is simply stating the numbers as published—it is simply stating the numbers as published—because we accept that the Government Statistician is statutorily independent. If the numbers go up it is because the numbers have gone up not because the Government Statistician is manipulating the numbers as that member has claimed. And he should know since he represents more public servants than anyone else in the Parliament. It is a disgrace.Grant Robertson: Does the Minister consider it a disgrace that the Minister of Finance stood in this House and said that Statistics New Zealand's statement that inequality in New Zealand had grown under his watch was statistically invalid; is that a disgrace as well?Hon BILL ENGLISH: I certainly did not accuse the Government Statistician of being manipulated by the Government and certainly would not do that. We have our own arguments with how numbers are put together but in the end that is why they are independent. With respect to those conclusions I passed on the advice I was given which I understand was legitimate statistical analysis that the conclusions they had drawn were not statistically valid. Since then I have had further advice that on balance they probably were."