Willis Says Economic Growth Key After Unemployment Rises

Statistics released today showed the unemployment rate reached 5.6 per cent, a result Willis said matches what many employers and workers experienced during April, May and June.

Finance Minister Nicola Willis says New Zealand's latest labour market figures reflect the difficult conditions faced by businesses and job seekers during the second quarter of the year, while arguing that stronger economic growth remains the Government's best path to creating more jobs.

Statistics released today showed the unemployment rate reached 5.6 per cent, a result Willis said matches what many employers and workers experienced during April, May and June. She said businesses were dealing with rising costs and economic uncertainty, leading many to delay recruitment or expansion plans.

The Minister acknowledged that the period had been particularly challenging for people searching for work, saying the Government recognises the difficulties many New Zealanders have faced in finding employment.

Business Confidence Seen as a Key Driver

Willis said improving business confidence is central to the Government's economic strategy, arguing that employers are more likely to hire new staff and invest in growth when they feel confident about future conditions.

She pointed to recent improvements in business confidence and hiring intentions as encouraging signs, though she said more work is needed to build momentum and support a broader economic recovery. According to Willis, creating an environment where businesses are prepared to invest and expand will play a major role in reducing unemployment over time.

Government Highlights Growth Initiatives

The Government says several policy initiatives are intended to stimulate economic activity and encourage job creation across different sectors. Willis highlighted continued support for the tourism and international education industries, both of which are expected to contribute to economic growth as visitor numbers recover. She also said efforts to fast-track major construction projects are designed to bring forward investment and create employment opportunities sooner.

Infrastructure spending remains another priority, with the Government continuing to invest in projects it says will strengthen New Zealand's long-term economic capacity while supporting jobs during construction.

Investment Incentives Aimed at Creating Jobs

Willis also pointed to the Government's Investment Boost initiative, which provides businesses with incentives to invest in new equipment and productive assets. She said these investments can improve productivity, strengthen businesses and support the creation of sustainable jobs over the longer term.

The Minister stressed that the Government is not looking for short-term solutions to improve employment figures. Instead, she said the focus is on building the confidence needed for businesses to make decisions about hiring more staff, expanding operations and increasing investment, steps she believes will help turn a difficult period into a stronger and more resilient economy.