Tuesday, April 16, 2013

Under-employment in NZ and internationally

Statistics NZ yesterday announced a new measure of under-employment to be added to existng HLFS labour market measures. 

Underemployment in New Zealand

The underemployment measure identifies people with a job who face a partial lack of work. It is useful to look at the underemployment rate in combination with the unemployment rate; together these two measures provide a more comprehensive view of how much potential labour there is readily available in the labour force. Compared with other OECD countries, New Zealand has a high underemployment rate but a lower unemployment rate.

Women, youth and Maori, and workers in retail and accommodation are the most likely to be under-employed. Under-employment in NZ is comparatively high but look at Australia.

I wonder if the Australian statistic reflects a lack of welfare available for migrants?


JC said...

It looks like there's a pattern of tradeoffs going on, ie, low underemployment/high unemployment.


Anonymous said...

Compare the "underemployment" rates with the generosity of benefits and you get a great inverse correlation.

Countries with generous benefits have underemployment

Countries with parsimonious benefits don't

Countries with no benefits have no underemployment and no unemployment either

you get what you pay for

Anonymous said...

Some other great results showing that paying the dole for any more than six months is completely useless


Dole payments - and any others where we expect people to return to work - should drop to zero well before six months.