Young Jonathan: Oral Questions — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeYoung Jonathan: Oral Questions — Questions to Ministers Questions to Members[Sitting date: 10 February 2016. Volume:711;Page:8831. Text is incorporated into the Bound Volume.]1.JONATHAN YOUNG (National—New Plymouth) to the Minister of Finance: What recent reports has he received on employment in New Zealand?Hon STEVEN JOYCE (Minister for Economic Development) on behalf of theMinister of Finance:Last week Statistics New Zealand released the labour market data for the December quarter of 2015. It showed that New Zealand’s unemployment rate had fallen to 5.3 percent with 175000 additional jobs created over the last 3 years. That means New Zealand has the tenth-lowest unemployment rate in the OECD but that does not tell the full story. Our employment rate is the third highest in the OECD New Zealand’s labour market participation rate is also the third highest in the OECD and it was also pleasing to see that the proportion of 15 to 19-year-olds not in education employment or training is at the lowest level since records began.Jonathan Young: How do changes in the average wage compare with costs of living increases?Hon STEVEN JOYCE: Statistics New Zealand figures show that the average weekly wage is up 3.1 percent over the last year to over $56000 with real wages growing considerably faster than inflation which is at just 0.1 percent. Treasury expects the average wage to reach $62500 by 2020 with another 173000 jobs forecast by then. These results highlight the importance of continuing the Government’s programme of microeconomic reform. It helps businesses have the confidence to invest and employ more people. This is particularly true given the signs of further international economic turbulence that we have seen recently.Jonathan Young: What recent steps has the Government taken to support more jobs and higher wages through international trade?Hon STEVEN JOYCE: Last week New Zealand hosted the signing of the Trans-Pacific Partnership agreement. This agreement means better access to 800 million consumers in 11 other countries which account for around 36 percent of the global economy. This will be New Zealand’s first free-trade agreement with five of those countries: Japan Canada Mexico Peru and the US which is of course the world’s largest economy. The agreement means New Zealand firms have increased opportunities to diversify. That will translate into more jobs and higher wages for New Zealand families.Grant Robertson: Is it correct that the household labour force survey shows that the labour force participation rate is lower by nearly 1 percent over the last year. That is 61000 more people who have opted out of the labour market—six times larger than the fall in unemployment during the same period?Hon STEVEN JOYCE: I appreciate the member’s new-found interest in the participation rate because normally he rubbishes the participation rate. But for the member’s benefityes the participation rate has dropped. I talked to Statistics New Zealand about that so listen and you might learn something. Fifty percent of that is people retiring—50 percent of it is people retiring. The member may like to take the view that people should not be allowed to retire and of course thatis possibly Labour Party policy but on this side of the House we think that once they have got to a certain age and they want to retire they should be allowed to do so with their superannuation.Jonathan Young: What alternative prescriptions for New Zealand’s growth has he seen?Mr SPEAKER: In so far as there is ministerial responsibility. I will be listening for that.Hon STEVEN JOYCE: I have seen one or two commentators lamenting New Zealand’s reliance on dairy and the need to diversify. New Zealand says one commentator in particular is too reliant on dairy and needs to move up the export value chain. Unfortunately this very same commentator has been a leading participant in opposing one of the single most important measures this Government has taken to achieve increased diversification and move up the value chain—Mr SPEAKER: Order! I can sense exactly where the question is going to go and it is not going to help the order of this House.