Unemployment 'less than predicted high’

Press, 21 February 1987, Page 8

Unemployment 'less than predicted high’

By

OLIVER RIDDELL

in Wellington Unemployment figures have been defended by the Minister of Finance, Mr Douglas, who says the picture is not as gloomy as it is being painted. He was replying to critical comments about the ■' increase in registered un- . employed of 3388 during 1 January. Both the Unemployed Workers’ Union and Public Service Association, as well as the Opposition, had attacked the Government for Mr Douglas’ ■handling of the economy and the worsening unemployment There were 30,000 more people in -work now than at the time of the 1984 election. In the year ended January 31, 1987, the increase of unemployed was only 7000, excluding vacation workers.

As well, 30,000 fewer people were unemployed or on special work than January, 1984, Mr Douglas said.

During the last 12 months the shift away from subsidised work schemes had inflated the number of registered unemployed but not the total number out of work.

In fact, real unemployment had not even reached its predicted high for January, usually the worst month of the year, he said.

“I am not denying an increase in unemployment,” Mr Douglas said, “but what I am saying is that these figures should be seen in perspective and not become the subject of emotive politicking.”

Not only were there 30,000 more jobs than 30 months ago but as many

as 50,000 to 80,000 new jobs had been created in new industries and spheres of activity which did not need hand-outs and protection to survive. Jobs had inevitably been lost in areas where taxpayer and consumer subsidies were their only reason for existence, he said.

The Government had two choices: it could live in the past and try to save every existing job, or look to the future and encourage industry to change. Mr Douglas said only the second option gave New Zealand hope for future growth and prosperity.