Unemployment ‘not like Depression’

Press, 9 December 1981, Page 3

Unemployment ‘not like Depression’

PA Wellington The Minister of Labour (Mr Bolger) lashed the news media yesterday for saying that last month’s unemployment and subsidised work figures were higher than those recorded during the Depression of the 19305. Comparing the two was like comparing New Zealand’s unemployment with Australia’s, “and saying we are doing a hell of a lot better than they — they have got half a million' unemployed." Mr Bolger told a press conference. Mr Bolger said last month’s figures showed that 3.1 per cent of the workforce were out of jobs. In the 1930 s the figure was 18.3 per cent, he said. Figures released by Mr Bolger’s office showed that the number of registered unemployed in November was 56.314. while 11,700 were in private sector job-creation schemes and 15,058 in public sector job-creation programmes — a total 83,072. Government figures show that unemployment during the Depression peaked at 79.587 in October, 1933. Mr Bolger said he wanted to get some “honest” interpretation of unemployment statistics through the news media, “something that has been extremely difficult." It was nonsense to compare today’s figures with the 19305. he said. The figures released on Monday showed 51,240 males either unemployed or in job schemes funded by the Labour Department in total or part.

To get a comparison with the 1930 s “we have to take from that, those under the age of 20 — because they were not counted in the 1930 s as being unemployed — and we have to take it from those who are not European." Student numbers were 6270. Assuming racial and age compositions were the same as on census night in March, a further 20.215 should be deducted. This resulted in a figure of 24.808. “the figure which can be used to compare the unemployed in New Zealand in 1981 with unemployed in the 19305." The figure was 3.1 per cent of the census employed figure of 787,600. The comparable figure in the 1930 s was the highest number of unemployed or on relief work. 79.587. This was 18.3 per cent of the 1936 census engaged labour-force figure of 435,708. Mr Bolger said the news media in general “lumped together" people as unemployed regardless of whether they were registered as unemployed and in receipt of an unemployment benefit or whether they were in fulltime, 40-hour-a-week award wage situations. “You also lump into that those who are in partial subsidy from the-State and who in all probability have a full-time job.” he said. “The news media put those all in the heap of unemployed.” Mr Bolger appealed to the news media to publish less “nonsense," saying that todays comparison with the 1930 s had caused a public reaction unprecedented in his memory. People had been telephon-

ing his office and his colleagues saying that it was not true that today’s unemployed equated to the 19305. Mr Bolger noted that a publication by the Labour member of Parliament, Dr M. E. R. Bassett, in 1967, said that by the end of 1932 two able-bodied men out of every five were without permanent employment and were receiving relief work. “I do not believe anyone seriously suggests that this is the situation today." Mr Bolger was asked if he was concerned that the unemployment figures were high, and that seasonal employment was not picking up quickly. He said the figures were higher this year, particularly in the student programme. Seasonal work was slower because the freezing industry, a big employer, was some weeks behind in killing. Mr Bolger tackled the suggestion that the department and the Minister somehow manipulated the release of the figures to avoid the Election. “That is simply untrue," he said. “The figures have always been collected on a given date — the last Friday or something of the month. They have been done precisely on that basis on this occasion. There is no way you can get figures that are collected on November 27 published on November 28." Answering an assertion that the money supply had been increased before the General Election and that once shut off, job opportunities would decline, Mr Bolger said he did not expect jobs would become tighter in March.