Well, the Reserve Bank has got what it wanted. Maybe not what it wanted, it's possibly the hard landing that they were hoping to avoid, but it got what it engineered. 

Back in 2022 the Reserve Bank told a Select Committee that, yes, it was deliberately engineering a recession to rein back inflation after being slow to raise interest rates. Governor Adrian Orr said as a result of raising interest rates to slow spending, there would likely be a rise in unemployment, but it may be a job-rich slow down because of the severe lack of labour in the economy. 

Remember, this was two years ago. Back in 2022, before the influx of migrants in 2023. He predicted that unemployment would peak at 5.7% in 2025 before things started to come right in terms of inflation, in terms of giving mortgage holders a bit of a breathing space. 

Figures released yesterday show that those on Jobseeker at the end of March have surpassed 5.7% of the working population already, we’re at 5.9 % in the middle of 2024. Still less than 6.4% of the working population we saw in March 2021, but it will make National’s aim of getting 50,000 people off Jobseeker benefits by 2030 that little bit harder in the short term. However, Social Development Minister Louise Upston isn't letting up on the message that those who can work should work.

“These sanctions will really show up those that are not doing their bit. That's why in the short term it's good to see that there's been an increase. People need to know if they can work, they should. And actually, any job is better than no job. And when times are tough and you need to put food on the table for your family, you get out there and do whatever is available. And that's the message I want to send really clearly, if you can work, you should, and the sanctions will mean you need to do your bit.”

Yep, the number of beneficiaries sanctioned in the March quarter is already 20% higher than a year ago. This is Ministry of Social Development, taking its cue from the Government. Louise Upson said the ministry seems to be taking the initiative on its own. While we'd rather see beneficiaries with work obligations comply to avoid being sanctioned, it's good to see the ministry utilising all the tools at its disposal to incentivise people into work. Those sanctions would have been well used back in 21/22/23, when we were screaming out for labour, and nobody could get workers for love nor money. When unemployment was at its highest, that's when we needed the workers the most. 

Right now, though, the job market has tightened and everybody is battening down their economic hatches until mid 2025, when hopefully the storm will have passed. 

Louise Upston says people shouldn't be sniffy about the type of work they do. Again, a sentiment I totally agree with, but who's hiring? 

I remember a number of people pivoting during Covid; airline pilots went farm labouring and opened cafes, executives went truck driving, but that was again different times. Our borders were closed, everybody was screaming out for workers in any and every field. They'd take all comers. 

Times have changed. All well and good to say people should take the jobs available, that they shouldn't be choosy and picky about what sort of work they do, and I'm stunned at the number of people who are. I'm stunned at the number of people who won't go to work because they're worth more. You know, the market kind of dictates. 

So, a sentiment I agree with, take the jobs that are available. Ok, what jobs are available? Are the same people who phoned me, the same employers who phoned me, begging for workers saying they'd help with relocation expenses, they would pay anything to anybody, you didn't have to be the perfect employee. Are you still in that same position? Or now can you pick and choose? 

Are you in the position of being able to say ordinarily I'd have picked you up, but I've got three people better right now, better qualifications, better work history. What jobs are available? If you're looking for workers, who are you looking for? And if you are one who is looking for work, is it as easy as Louise Upston says? There are jobs out there. Get cracking if you want to put food on the table, off you go.

Well, the Reserve Bank has got what it wanted. Maybe not what it wanted, it's possibly the hard landing that they were hoping to avoid, but it got what it engineered.  
Back in 2022 the Reserve Bank told a Select Committee that, yes, it was deliberately engineering a recession to rein back inflation after being slow to raise interest rates. Governor Adrian Orr said as a result of raising interest rates to slow spending, there would likely be a rise in unemployment, but it may be a job-rich slow down because of the severe lack of labour in the economy.  
Remember, this was two years ago. Back in 2022, before the influx of migrants in 2023. He predicted that unemployment would peak at 5.7% in 2025 before things started to come right in terms of inflation, in terms of giving mortgage holders a bit of a breathing space.  
Figures released yesterday show that those on Jobseeker at the end of March have surpassed 5.7% of the working population already, we’re at 5.9 % in the middle of 2024. Still less than 6.4% of the working population we saw in March 2021, but it will make National’s aim of getting 50,000 people off Jobseeker benefits by 2030 that little bit harder in the short term. However, Social Development Minister Louise Upston isn't letting up on the message that those who can work should work. 
“These sanctions will really show up those that are not doing their bit. That's why in the short term it's good to see that there's been an increase. People need to know if they can work, they should. And actually, any job is better than no job. And when times are tough and you need to put food on the table for your family, you get out there and do whatever is available. And that's the message I want to send really clearly, if you can work, you should, and the sanctions will mean you need to do your bit.” 
Yep, the number of beneficiaries sanctioned in the March quarter is already 20% higher than a year ago. This is Ministry of Social Development, taking its cue from the Government. Louise Upson said the ministry seems to be taking the initiative on its own. While we'd rather see beneficiaries with work obligations comply to avoid being sanctioned, it's good to see the ministry utilising all the tools at its disposal to incentivise people into work. Those sanctions would have been well used back in 21/22/23, when we were screaming out for labour, and nobody could get workers for love nor money. When unemployment was at its highest, that's when we needed the workers the most.  
Right now, though, the job market has tightened and everybody is battening down their economic hatches until mid 2025, when hopefully the storm will have passed.  
Louise Upston says people shouldn't be sniffy about the type of work they do. Again, a sentiment I totally agree with, but who's hiring?  
I remember a number of people pivoting during Covid; airline pilots went farm labouring and opened cafes, executives went truck driving, but that was again different times. Our borders were closed, everybody was screaming out for workers in any and every field. They'd take all comers.  
Times have changed. All well and good to say people should take the jobs available, that they shouldn't be choosy and picky about what sort of work they do, and I'm stunned at the number of people who are. I'm stunned at the number of people who won't go to work because they're worth more. You know, the market kind of dictates.  
So, a sentiment I agree with, take the jobs that are available. Ok, what jobs are available? Are the same people who phoned me, the same employers who phoned me, begging for workers saying they'd help with relocation expenses, they would pay anything to anybody, you didn't have to be the perfect employee. Are you still in that same position? Or now can you pick and choose?  
Are you in the position of being able to say ordinarily I'd have picked you up, but I've got three people better right now, better qualifications, better work history. What jobs are available? If you're looking for workers, who are you looking for? And if you are one who is looking for work, is it as easy as Louise Upston says? There are jobs out there. Get cracking if you want to put food on the table, off you go.

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

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