Bennett David: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeBennett David: Oral Questions — Questions to Ministers[Sitting date: 06 November 2014. Volume:701;Page:693. Text is incorporated into the Bound Volume.]1.DAVID BENNETT (National—Hamilton East)to the Minister for Economic Development: What reports has he received on job growth in the New Zealand economy?Hon STEVEN JOYCE (Minister for Economic Development):Yesterday the household labour force survey for the September quarter was released. It shows steady job growth over the quarter. There are 18000 more people in employment than 3 months ago and there are 72000 more than 12 months ago. New Zealand’s unemployment rate is now down to 5.4 percent. It is the lowest unemployment rate since March 2009. Even with more Kiwis voting with their feet and staying home we are matching the influx of new people with more jobs. A growing economy is getting more New Zealanders into work and we are going to keep focusing on creating the conditions for the economy to grow through our consistent macro-economic policies and the Government’s Business Growth Agenda.David Bennett: How many new jobs have been created in recent years compared with previous forecasts and how do the latest average wage increases compare with cost of living changes?Hon STEVEN JOYCE: As some members of the House will recall in Budget 2011 Treasury forecast 171000 jobs to be added to the economy by mid-2015. The latest household labour force survey confirms there have been 159000 new jobs created since Budget 2011. That is actually 12000 jobs ahead of Treasury’s projections which is great for New Zealand. In terms of average wage increases the quarterly employment survey released yesterday which is the official measure of wage movements shows average hourly wages rose 2.3 percent over the last year. That is 2.3 percent over the last year. It also shows that average weekly wages grew by about 1.8 percent compared with inflation of 1 percent so on average New Zealanders are receiving wage rises ahead of the cost of living which is helping them get ahead.David Bennett: How does the employment picture vary across New Zealand?Hon STEVEN JOYCE: What is really pleasing about the data released yesterday is that in the year to September unemployment is down in all regions but one. However there are some interesting regional variations. For example of the 72000 more people in employment across New Zealand in the last year 41000 of them over half are in the South Island. In fact the North Island’s unemployment rate is significantly higher than the South Island rate. The North Island is at 6.2 percent and the South Island is down 1 percent to 3.4 percent. It is not just the Christchurch rebuild. I am pleased to advise some of the members opposite who are concerned about a particular region that unemployment in Otago continues to be in the threes—3.8 percent down 1 percent from a year ago and in Southland it is 3.3 percent down from 5.4 percent a year ago.David Bennett: What other reports has he seen on unemployment?Hon STEVEN JOYCE: A couple of reports. This afternoon Australia released its unemployment data. It shows an unemployment rate of 6.2 percent across the Tasman as compared with 5.4 percent in this country. Our comparative strong economic performance and as a result emerging skill shortages is one of the reasons why we are planning a series of job fairs across a number of key Australian cities to attract Kiwis back and also to attract skilled Aussies to support New Zealand’s growing economy.Rt Hon Winston Peters: I raise a point of order Mr Speaker. My point of order is that there is no ministerial responsibility in this House for a report out of Australia.Mr SPEAKER: Order! The member will resume his seat. The question asked: “What other reports” and the Minister has every right to address that in his capacity as Minister.Hon STEVEN JOYCE: I have also seen a second report from a new-generation commentator with strong links to the Wellington beltway who said: “While it is good news that unemployment overall has fallen it only benefits those lucky enough to find jobs.” Let us think about that for a minute.Mr SPEAKER: Order! Just complete the answer.Hon STEVEN JOYCE: It is a reasonably self-evident point but I think it is a very insightful comment from Mr Robertson.Dr David Clark: Six years on how long does he think it will take unemployment to fall from 5.4 percent now to the 4.5 percent he inherited from Labour?Hon STEVEN JOYCE: I thank the member for drawing attention to what we had to deal with that we inherited from Labour including a domestic recession ahead of the global financial crisis which of course arrived—Dr Clark might have missed it. He also may have missed the impact of the Canterbury earthquakes on our second-largest city. My understanding is that Treasury expects unemployment to be around 4.4 percent at the end of the current forecast period and of course we will be working hard to get it below that. It is one of the lowest rates of unemployment in the OECD today.Dr David Clark: Given that answer is he sticking to his target of reducing unemployment below 4 percent by 2025 14 years after the earthquake and 14 years after the end of the global financial crisis or does he think it is time to be a little more ambitious?Hon STEVEN JOYCE: Certainly I as Minister have no target that the member has described. I would be interested to see it. I have a sneaking suspicion he is talking about an ongoing Ministry of Business Innovation and Employment target. He can feel free to tell us a bit more about it if he would like.