Pacific unemployment in New Zealand surges to nearly double national rate

Despite overall employment figures remaining stable, Labour's Pacific peoples spokesperson Carmel Sepuloni describes the figures for Pacific unemployment as "shameful".

"It's disheartening to see more Pacific people unemployed as the government chooses to cut public service jobs and scrap housing and infrastructure projects, while giving billions to landlords and the tobacco lobby," Sepuloni says.

"We have thousands fewer roles in construction, agriculture, forestry and fishing - industries where many Pacific people are employed.

"We want our Pacific people to be in secure, well-paying jobs and we will continue bringing their voices to the forefront to challenge a government which has thus far ignored them."

Carmel Sepuloni Photo: RNZ / Angus Dreaver

Finance Minister Nicola Willis acknowledges the latest labour data as "encouraging," highlighting wage growth of 4.5 percent over the past year.

"I know people are still struggling in this economy, that's why on May 22 the government will deliver a Budget that continues the work to get the books back in order, while building on the foundations we've laid to foster economic growth," Willis says.

"It will be a responsible Budget that secures New Zealand's future."

The upcoming Budget will see the operating allowance being cut from $2.4 billion to $1.3b.

"This means we will be spending billions less over the forecast period than would have otherwise been the case," Willis says.

"This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction."

Sepuloni strongly criticises the upcoming Budget, calling it a "slash-and-burn" plan likely to exacerbate existing inequalities.

She criticises the government's recent Equal Pay Amendment Bill which changes the rules around how individuals can request pay equity.

"This also comes as the Government takes more money out of Pacific women's pockets and looks to remove the living wage for workers in cleaning, catering, and security services, dealing a huge blow to the many Pacific workers in those jobs."

The pay gap for Pacific workers in the public service has widened to 17.2 percent, up from 16.6 percent last year.

Pacific women are experiencing the largest disparity, earning 20.9 percent less than the average male wage.

The unemployment figures follow last November's findings where the Pacific unemployment rate rose to 9.9 percent.

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Barbara Edmonds Photo: RNZ / Samuel Rillstone

At the time, Labour MP Barbara Edmonds had raised concerns over the lack of targeted interventions for Pacific youth, whose unemployment had reached a critical 24.4 percent, which is one in every four Pacific youths.

Edmonds points out the Government's reduction of funding for programmes supporting Pacific youth not in employment, education, or training (NEET).

"If a sector of your population has higher unemployment rates, you need targeted interventions, and we're not seeing that under this government," Edmonds says.

- RNZI