Mike's Minute: The unemployment rate dazed the Government

It could have been a coordinated knife to the Government's heart.  On the day the unemployment rate went up, the Warehouse offered a real world example of the problem by announcing another 270 jobs would be added to the pile as they look to save and outsource and generally reorganise themselves.  The irony, well lost in the throng of those who look to use the headline for political gain, was the fact the number of people employed is up. It's up by 15,000.  But the headline is the headline and 5.4% is not 5.3%, or 5.2%.  So it makes Gareth Kiernan at Infometrics more right that any Government member had hoped.  5.4% is deja vu. It's February of 2025 all over again. There's a lot to be pleased about but the big prize, the tail at the end of the economic dog being jobs, did not come to the party.  And that old chestnut of Auckland is back to haunt us as well. They've got the highest jobless rates to be found in big cities with close to 6%. Wellington and Hamilton are close to 6% too. If the cities don’t fire, the country doesn’t fire.  It will of course. The vibe in Auckland is palpable in a variety of different areas. Positivity is well and truly back, but it takes time.  And in election year time is of the essence.  Luxon's pitch so far this year is the right one. But talking about recovery is one thing, you've got to actually feel it.  The real trouble in these numbers is not the headline.  1) It's those who need more work. Why? The cost of living. There is a big uptick of women back in the workforce. Ask yourself why.  2) The young people aged 15-24 is over 16%. It's always high but this is too high. Anyone with offspring in this age group knows the struggle. Our youngest has work but she hustled.  3) Australia. Say what you want about the price of a house and the inflation rate, and they are real issues and Australia is in trouble overall this year, but apples and apples, jobs to jobs, they kill us.  This is not a stat for nuance and subtlety. You can't pick out some vague highlights like a region, or a sector, or an industry and try and milk it.  Unemployment got worse. Full stop.  With all the rest of it in place and looking so much better there is a recovery on and it will come right.  But right here, right now, this week, the jobs stat for a government relying on economic credibility took a right hook and will be dazed. See omnystudio.com/listener for privacy information.