The world economic crisis has driven rising unemployment and the effects are being felt in New Zealand and globally. At the same time as New Zealand’s unemployment rate grows the National government has completely declined to respond to major job losses, including within heavy industry. The government’s only response on the question of unemployment has been increasing barriers to accessing benefits and vilifying unemployed people.
As the rate of unemployment grows the government’s ‘strategy’ will increasingly be shown to be nonsense and it will become more apparent to many people that only socialist solutions can resolve the unemployment problem.
The number of officially unemployed in New Zealand rose by 13,000 within the third quarter of 2012, taking the rate of unemployment to 7.3%. That is the highest rate of unemployment experienced in New Zealand since three decades ago. This increased unemployment is a result of an economic slowdown which is slowing the number of new jobs being created as well as producing redundancies.
According to the ILO the global rate of unemployment stabilised for a two year period in 2011 and 2012 but is set to increase again. In 2012 the total number of unemployed rose by 4.2 million and that number is expected to increase in 2012.
Youth unemployment rates for those aged under 25 have reached historic highs in the advanced capitalist countries of Europe in 2012. Overall, the youth unemployment rate for EU countries at September 2012 was 22.8% and was up by more than 1% on the previous year. Read the rest of this entry »