Politics blog for week of 4 August
When will unemployment reduce? Nicola Willis holds hope for improvement this year
Finance Minister Nicola Willis remains hopeful that unemployment will start to reduce sometime this year, but given global economic uncertainty with Donald Trump's trade wars she won't give a more exact time frame.
This morning, Stats NZ confirmed unemployment had increased by 0.1% - reaching 5.2%.
This is the highest unemployment rate New Zealand has seen since mid-pandemic.
During a press conference at her office a few moments ago, I asked the minister why unemployment had reached that unfortunate milestone.
"We have gone through, as every New Zealander knows, a very difficult period in our economic history... what we're experience is the aftershocks of what was a very difficult period," she replied.
She said the unemployment rate was high compared to recent years, but was not unusually high if you look back the early 2010s.
"When this number comes down that will be New Zealand closing the chapter on what has been a period of very poor economic management," she said.
This morning, Stats NZ confirmed unemployment had increased by 0.1% - reaching 5.2%.
This is the highest unemployment rate New Zealand has seen since mid-pandemic.
During a press conference at her office a few moments ago, I asked the minister why unemployment had reached that unfortunate milestone.
"We have gone through, as every New Zealander knows, a very difficult period in our economic history... what we're experience is the aftershocks of what was a very difficult period," she replied.
She said the unemployment rate was high compared to recent years, but was not unusually high if you look back the early 2010s.
"When this number comes down that will be New Zealand closing the chapter on what has been a period of very poor economic management," she said.
So when will that "chapter" close? Willis wouldn't give a specific date, although when I asked her this afternoon she did say she expected improvement later this year.
"I continue to expect that unemployment will come down later this year, but the question all economists have on their minds is: 'What is the residual impact of the Trump tariff shock?'"
During that press conference, Willis also said she would be traveling to the US and UK later this month. The trip was scheduled to meet with debt brokers who lend money to the Government, but she said she would also look to help diplomats working to get out of Trump's 15% tariff on New Zealand exports to the US.
"I continue to expect that unemployment will come down later this year, but the question all economists have on their minds is: 'What is the residual impact of the Trump tariff shock?'"
During that press conference, Willis also said she would be traveling to the US and UK later this month. The trip was scheduled to meet with debt brokers who lend money to the Government, but she said she would also look to help diplomats working to get out of Trump's 15% tariff on New Zealand exports to the US.