Unemployment has risen again but economists don't think it's peaked yet.

Stats NZ figures out today show the rate reached 4.3% for the March quarter, up 0.3 percentage points from the December quarter's 4%.

It reflects the impacts of higher interest rates as the Reserve Bank keeps trying to rein in inflation.

Herald Business Editor at Large Liam Dann told Kerre Woodham that it's a slow and steady rise.

He says 134 thousand people are now unemployed, up from 122 thousand at the end of 2023, meaning 12 thousand jobs have gone.

LISTEN ABOVE  

Unemployment has risen again but economists don't think it's peaked yet. 
Stats NZ figures out today show the rate reached 4.3% for the March quarter, up 0.3 percentage points from the December quarter's 4%. 
It reflects the impacts of higher interest rates as the Reserve Bank keeps trying to rein in inflation. 
Herald Business Editor at Large Liam Dann told Kerre Woodham that it's a slow and steady rise. 
He says 134 thousand people are now unemployed, up from 122 thousand at the end of 2023, meaning 12 thousand jobs have gone. 
LISTEN ABOVE

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.

Kerre Woodham Mornings Podcast

Liam Dann: NZ Herald Business Editor says unemployment is increasing at a slow and steady rate

I know we have no money.  I know the government is in dire straits and making really tough decisions when it comes to spending and where that spending is targeted, but I will be so sad if First Home Grants is one of the schemes that gets cut in the review of housing projects that is under way. The review is necessary because the previous government and its agents mismanaged Kainga Ora to the extent that New Zealanders not even born yet will be paying off its debts. If it hadn’t gotten into so much trouble, there would be more money to go around and go around everywhere.

And I know —we were having the conversation yesterday— that there is a desperate need for social housing. But surely there is also a moral imperative to acknowledge people who are doing the right thing, who are working hard, who are saving , who are young, who are the future of this country. They don't have addictions, they don't appear before the courts, they’re not ‘victims’. They simply want to live a good life, look after themselves, look after their families, enjoy their mates, and enjoy all this country has to offer. All those good kids who make up the majority of New Zealanders. And you might say that living well is its own reward, but at a time when housing is so prohibitively expensive every little bit helps, and would it really hurt the country if we diverted $60 million of the housing budget to first home buyers to reward them for their discipline and hard work?

When you are getting together the deposit for your first home, you’re scratching, you haven’t been working that long, you’ve paid off your student loan —if you had one— or if you’ve been in the trades you’ve been living at home and saving the money you get and putting it in a pot. You’re not going out and you’re making the right choices, and you’re getting that money together. Having a grant of $5000 for an existing home or $10,000 for a new build to first home buyers who meet the income threshold is a really powerful incentive to have a stake in this country. To not take off and chase the money overseas.

Those young people are saying we believe in this country, and we believe in sticking here, and we believe in putting down roots, and having a home, and having a family, and staying here and contributing. And I would love to see that those grants stay because there’s precious little for people who are doing the right thing. 

The coalition is reviewing all housing support initiatives, and it was Shane Jones’ loose lips who dropped the fact that first-home grants might be under it. Labour's housing spokesperson Kieran McAnulty said scrapping the grants would be a cynical move.  McAnulty said the scheme, which was originally started by the previous National government, was a good idea, and Labour had expanded on it. I really do think there needs to be room within the government, not just to focus on the minority who cost us so much money, so much of our taxes goes towards people who are doing the wrong thing, who make mistakes, who deliberately set about, you know, imploding, destructing, destroying their lives, so much of the money goes there.

What about the quiet, hardworking, good young men and women who don’t want government help per se, but an acknowledgement that they are able to be disciplined, and thrifty, and hardworking, and we say as fellow taxpayers, hey, thank you very much. Here’s a tiny bit towards your first home. Thank you for staying here, thank you for putting down roots in this community and contributing to a future New Zealand. 

We’ve had far too many fatted calves slaughtered for the prodigal sons, sometimes the hardworking son who stays on the farm and fulfils his obligations deserves a reward too.  

I know we have no money.  I know the government is in dire straits and making really tough decisions when it comes to spending and where that spending is targeted, but I will be so sad if First Home Grants is one of the schemes that gets cut in the review of housing projects that is under way. The review is necessary because the previous government and its agents mismanaged Kainga Ora to the extent that New Zealanders not even born yet will be paying off its debts. If it hadn’t gotten into so much trouble, there would be more money to go around and go around everywhere. 
And I know —we were having the conversation yesterday— that there is a desperate need for social housing. But surely there is also a moral imperative to acknowledge people who are doing the right thing, who are working hard, who are saving , who are young, who are the future of this country. They don't have addictions, they don't appear before the courts, they’re not ‘victims’. They simply want to live a good life, look after themselves, look after their families, enjoy their mates, and enjoy all this country has to offer. All those good kids who make up the majority of New Zealanders. And you might say that living well is its own reward, but at a time when housing is so prohibitively expensive every little bit helps, and would it really hurt the country if we diverted $60 million of the housing budget to first home buyers to reward them for their discipline and hard work? 
When you are getting together the deposit for your first home, you’re scratching, you haven’t been working that long, you’ve paid off your student loan —if you had one— or if you’ve been in the trades you’ve been living at home and saving the money you get and putting it in a pot. You’re not going out and you’re making the right choices, and you’re getting that money together. Having a grant of $5000 for an existing home or $10,000 for a new build to first home buyers who meet the income threshold is a really powerful incentive to have a stake in this country. To not take off and chase the money overseas. 
Those young people are saying we believe in this country, and we believe in sticking here, and we believe in putting down roots, and having a home, and having a family, and staying here and contributing. And I would love to see that those grants stay because there’s precious little for people who are doing the right thing.  
The coalition is reviewing all housing support initiatives, and it was Shane Jones’ loose lips who dropped the fact that first-home grants might be under it. Labour's housing spokesperson Kieran McAnulty said scrapping the grants would be a cynical move.  McAnulty said the scheme, which was originally started by the previous National government, was a good idea, and Labour had expanded on it. I really do think there needs to be room within the government, not just to focus on the minority who cost us so much money, so much of our taxes goes towards people who are doing the wrong thing, who make mistakes, who deliberately set about, you know, imploding, destructing, destroying their lives, so much of the money goes there. 
What about the quiet, hardworking, good young men and women who don’t want government help per se, but an acknowledgement that they are able to be disciplined, and thrifty, and hardworking, and we say as fellow taxpayers, hey, thank you very much. Here’s a tiny bit towards your first home. Thank you for staying here, thank you for putting down roots in this community and contributing to a future New Zealand.  
We’ve had far too many fatted calves slaughtered for the prodigal sons, sometimes the hardworking son who stays on the farm and fulfils his obligations deserves a reward too.

Kerre Woodham: Hardworking Kiwis deserve a reward too

The scathing review into the government's public housing landlord Kainga Ora, which was led by former Prime Minister Sir Bill English, was released yesterday and it was every bit as bad as those with half a brain had expected.

It found the social housing system is not socially or financially sustainable. As a result, the board has, in effect, been sacked and a new chairman has been appointed.

New incumbent housing minister, Chris Bishop says it's bad.

“It was fairly alarming, to be honest, I'm probably understating that a little bit.I mean this is an organization that, $45 billion company, owns 70,000 houses, bit more than that actually, running massive deficits. So, $500 million in the 2022-2023 financial year, forecast to grow to $700 million a year. That's all deficits that are paid for by taxpayers by the way. Massive debt, so it was about $2 billion in 2017-2018, it's now forecast to increase to $23 billion by 2028. So it's just not sustainable, as a review finds by the Bill. It’s not sustainable, but the Crown continues to fund it and we're going to have to take action, that’s what we announced yesterday.”

So everything now is up in the air and National, no doubt will get the blame, or the coalition government will get the blame should anything be halted, delayed, or scrapped entirely. But alarm bells over the level of KO’s expenditure practices and debt have been ringing for years. The sound of squawking and the flurry of feathers are just all the chickens coming home to roost. Now it's official.

We had Megan Woods on the show a number of years ago about anecdotal stories of Kainga Ora outbidding local buyers, paying over the odds for homes at auction. She said, oh, she didn't know anything about that, there was nothing official, there were no official complaints. So yeah, look sorry, you know, without the details, she couldn't do more. At the time we had to accept that. But as it transpires Kainga Ora spent $750 million between 2018 and 2021 on buying property across the country to turn into state homes. They weren't building any new ones at that time.

They were, these were 1000 homes that had been bought at auction, in private sale, under the noses of first home buyers who were going for exactly that sort of house. 1,053 homes that the government agency bought by outbidding Kiwis. People who would struggle to put together a deposit and to get a loan permitted were having to go up against Kainga Ora who had bottomless pockets because we, the taxpayer were funding them.

Then we had the leaked document two years ago that advised Megan Woods not to grant any future money to Kainga Ora over fears of unsustainable debt levels. We've talked about this ad nauseam that the debts are going to have to be paid by Kiwis who aren't even born yet. There were fears then that the government would be unable to completely repay the increase in debt over the next 60 years, and even if the new debt can be repaid by the then 2081 forecast, there'd still be nearly $9 billion outstanding.

It's been in trouble for a very, very long time.

I'm not surprised that the board has been, what were they doing when you looked at the numbers? Did they think the money machine was just going to keep churning out this money forever? Did not one of them have an ounce of common sense, or just caution and say, look, you know, seriously, look at this debt level. I suppose you had somebody on the other side saying, yeah, but look at the housing stock, get into trouble, we can just sell it off.

Was, I have no idea what the thinking was on that board at all, or how you could keep approving budgets that, that showed debt that was basically unsustainable. I mean, where on earth do you go from here?

I've heard from people who were involved in building Kainga Ora homes that each one was architecturally designed, and bespoke, and beautiful. And they do, many of them look absolutely lovely. You know, they’re homes that you would want yourself, and that's great, but why wasn't one architect tasked with the job of putting up, say three different designs, family homes, apartments, the like, and cookie cutter them?

So many people have told me over the years that they could do a whole lot more with a whole lot less. And just because it's, it's government money, taxpayer money, everybody loads the invoices, everybody thinks that the money train is just gonna keep rolling in. The more sensible among us, we're warning, no, at some point, this is going to have to be paid.

But the, the thing that really rips my nightie is that it's Kiwis who aren't even born yet who are going to be paying for this mismanagement, this incompetence, this complete arrogance when it comes to the public purse and that's what really hurts.

I'm, you know, I'd love to be shocked. I'm not at all shocked and I bet you're not either. These figures have been coming, all Sir Bill English did was say, yep, it's official, it's a bloody basket case. And we will be paying for the incompetence of the previous administration for decades and generations to come.

The scathing review into the government's public housing landlord Kainga Ora, which was led by former Prime Minister Sir Bill English, was released yesterday and it was every bit as bad as those with half a brain had expected. 
It found the social housing system is not socially or financially sustainable. As a result, the board has, in effect, been sacked and a new chairman has been appointed. 
New incumbent housing minister, Chris Bishop says it's bad. 
“It was fairly alarming, to be honest, I'm probably understating that a little bit. I mean this is an organization that, $45 billion company, owns 70,000 houses, bit more than that actually, running massive deficits. So, $500 million in the 2022-2023 financial year, forecast to grow to $700 million a year. That's all deficits that are paid for by taxpayers by the way. Massive debt, so it was about $2 billion in 2017-2018, it's now forecast to increase to $23 billion by 2028. So it's just not sustainable, as a review finds by the Bill. It’s not sustainable, but the Crown continues to fund it and we're going to have to take action, that’s what we announced yesterday.” 
So everything now is up in the air and National, no doubt will get the blame, or the coalition government will get the blame should anything be halted, delayed, or scrapped entirely. But alarm bells over the level of KO’s expenditure practices and debt have been ringing for years. The sound of squawking and the flurry of feathers are just all the chickens coming home to roost. Now it's official. 
We had Megan Woods on the show a number of years ago about anecdotal stories of Kainga Ora outbidding local buyers, paying over the odds for homes at auction. She said, oh, she didn't know anything about that, there was nothing official, there were no official complaints. So yeah, look sorry, you know, without the details, she couldn't do more. At the time we had to accept that. But as it transpires Kainga Ora spent $750 million between 2018 and 2021 on buying property across the country to turn into state homes. They weren't building any new ones at that time. 
They were, these were 1000 homes that had been bought at auction, in private sale, under the noses of first home buyers who were going for exactly that sort of house. 1,053 homes that the government agency bought by outbidding Kiwis. People who would struggle to put together a deposit and to get a loan permitted were having to go up against Kainga Ora who had bottomless pockets because we, the taxpayer were funding them. 
Then we had the leaked document two years ago that advised Megan Woods not to grant any future money to Kainga Ora over fears of unsustainable debt levels. We've talked about this ad nauseam that the debts are going to have to be paid by Kiwis who aren't even born yet. There were fears then that the government would be unable to completely repay the increase in debt over the next 60 years, and even if the new debt can be repaid by the then 2081 forecast, there'd still be nearly $9 billion outstanding. 
It's been in trouble for a very, very long time. 
I'm not surprised that the board has been, what were they doing when you looked at the numbers? Did they think the money machine was just going to keep churning out this money forever? Did not one of them have an ounce of common sense, or just caution and say, look, you know, seriously, look at this debt level. I suppose you had somebody on the other side saying, yeah, but look at the housing stock, get into trouble, we can just sell it off. 
Was, I have no idea what the thinking was on that board at all, or how you could keep approving budgets that, that showed debt that was basically unsustainable. I mean, where on earth do you go from here? 
I've heard from people who were involved in building Kainga Ora homes that each one was architecturally designed, and bespoke, and beautiful. And they do, many of them look absolutely lovely. You know, they’re homes that you would want yourself, and that's great, but why wasn't one architect tasked with the job of putting up, say three different designs, family homes, apartments, the like, and cookie cutter them? 
So many people have told me over the years that they could do a whole lot more with a whole lot less. And just because it's, it's government money, taxpayer money, everybody loads the invoices, everybody thinks that the money train is just gonna keep rolling in. The more sensible among us, we're warning, no, at some point, this is going to have to be paid. 
But the, the thing that really rips my nightie is that it's Kiwis who aren't even born yet who are going to be paying for this mismanagement, this incompetence, this complete arrogance when it comes to the public purse and that's what really hurts. 
I'm, you know, I'd love to be shocked. I'm not at all shocked and I bet you're not either. These figures have been coming, all Sir Bill English did was say, yep, it's official, it's a bloody basket case. And we will be paying for the incompetence of the previous administration for decades and generations to come.

Kerre Woodham: I'd love to be shocked by the Kainga Ora figures

The report out that workplace bullying is costing the country in terms of productivity and lost earnings is nothing new.  Bullying and harassment are conservatively estimated to cost employers $1.5 billion a year, according to a new study by KPMG, published for Friday's Pink Shirt Day.   

Years ago, there was a story on workplace bullying that surfaced in the news and the Department of Labour had to scramble to get extra staff to man the phones when a helpline they set up to take calls was overwhelmed. They had to keep it running for far longer than they ever imagined they would need to, such was the response.

I'd like to think things have changed since I was a young journalist, but I don't think they have, and the report seems to confirm they have not.

I grew up in newsrooms which were no place for the fainthearted.  Sure, there was no physical hazing or pranking, but journos are good with words and there was some brutal sledging.  I wasn't often on the receiving end of it, but on the rare occasion, I had a boss lean over me screaming into my face that I was effing useless and that I didn't deserve to be there and who the ‘f’ had I slept with to be on the team was fairly memorable.  To be fair, I was a bit rubbish. Most people new to any job make mistakes and haven't developed into the best versions of themselves, and yes, I probably didn't deserve to be there. I knew I hadn't slept my way into the job and the others knew I hadn't so that bit didn't really matter. So, after a bit of a cry in the toilets and being mopped up by my colleagues it was onwards and upwards.  A different person might have been scarred for life. Given up on their chosen career and done something else.   

And I rather fear it is still happening because today’s study used data from the Human Rights Commission’s 2022 report, which surveyed 2500 workers across Aotearoa and found 29% of workers experienced at least one bullying or harassment behaviour in the year before the survey.  The report found that 58% of the total cost of ($780m) in 2021-22 arose from impacts on female workers as they are disproportionately affected by bullying or harassment, according to the report. Or maybe it’s more likely that they will report it or that they will find offence and hurt from words other workers might not.

It found that every worker affected cost employers about $1600, which could be broken down into absenteeism ($219), presenteeism ($450), where you’re there, but you’re not there. You’re at your desk but you’re not working. Increased staff turnover ($674), and internal procedures such as dealing with complaints ($270).  Big numbers, no doubt about that.  

At least now there are procedures for dealing with complaints. Back then, it was ‘suck it up and get on with it’. But I mean, nobody in the olden days was trained to be a boss. After a certain period of time you were promoted, you became one whether you were good at dealing with people or not. These days, I think the training is a little bit better if you want to be a manager. You’re given a bit more support once you become a manager, but back then, it just simply didn’t happen.

But it’s also difficult to know how people are going to receive your words. I mean, we were talking about this before and the boss is, you know, sometimes he will say ‘I'd like you to do this’, and a young worker will say, ‘yeah, no, not really for me.’ And he goes ‘it wasn't, this isn't a workshop. This is, this is not a discussion. This is what I need you to do to do your job.’ And that can be construed in this day and age as bullying. 

A bit of banter between work mates, fine. A bit of banter with the wrong workmate? Not fine.

It all has to be so nuanced, doesn't it? And I know that I have got the height of a rhinoceros, I know that I will go for the one liner wherever I can and sometimes that can be hurtful. So, I have tried to give younger workers, you know, when they feel that they might, I might have gone too far, a way of letting me know that. I know that I'm older, I've been around longer,  I can be bolshy, so I try to let them know that they can tell me if I'm a bit much. So far they haven't, and I hope that's not because they're not cowering in their crocs.

I try to be mindful that we're all of different generations, that we all grew up with different expectations. But it must be incredibly difficult to manage when you are a manager with numerous generations of workers. When you need a job done. When people respond in different ways to different instructions. 

I have no doubt that there are some toxic, nasty, petty people who exist to make others' lives misery, but I do sometimes wonder whether some of these figures Are not toxic bullying but crossed wires.

The report out that workplace bullying is costing the country in terms of productivity and lost earnings is nothing new.  Bullying and harassment are conservatively estimated to cost employers $1.5 billion a year, according to a new study by KPMG, published for Friday's Pink Shirt Day.    
Years ago, there was a story on workplace bullying that surfaced in the news and the Department of Labour had to scramble to get extra staff to man the phones when a helpline they set up to take calls was overwhelmed. They had to keep it running for far longer than they ever imagined they would need to, such was the response. 
I'd like to think things have changed since I was a young journalist, but I don't think they have, and the report seems to confirm they have not. 
I grew up in newsrooms which were no place for the fainthearted.  Sure, there was no physical hazing or pranking, but journos are good with words and there was some brutal sledging.  I wasn't often on the receiving end of it, but on the rare occasion, I had a boss lean over me screaming into my face that I was effing useless and that I didn't deserve to be there and who the ‘f’ had I slept with to be on the team was fairly memorable.  To be fair, I was a bit rubbish. Most people new to any job make mistakes and haven't developed into the best versions of themselves, and yes, I probably didn't deserve to be there. I knew I hadn't slept my way into the job and the others knew I hadn't so that bit didn't really matter. So, after a bit of a cry in the toilets and being mopped up by my colleagues it was onwards and upwards.  A different person might have been scarred for life. Given up on their chosen career and done something else.    
And I rather fear it is still happening because today’s study used data from the Human Rights Commission’s 2022 report, which surveyed 2500 workers across Aotearoa and found 29% of workers experienced at least one bullying or harassment behaviour in the year before the survey.  The report found that 58% of the total cost of ($780m) in 2021-22 arose from impacts on female workers as they are disproportionately affected by bullying or harassment, according to the report. Or maybe it’s more likely that they will report it or that they will find offence and hurt from words other workers might not. 
It found that every worker affected cost employers about $1600, which could be broken down into absenteeism ($219), presenteeism ($450), where you’re there, but you’re not there. You’re at your desk but you’re not working. Increased staff turnover ($674), and internal procedures such as dealing with complaints ($270).  Big numbers, no doubt about that.   
At least now there are procedures for dealing with complaints. Back then, it was ‘suck it up and get on with it’. But I mean, nobody in the olden days was trained to be a boss. After a certain period of time you were promoted, you became one whether you were good at dealing with people or not. These days, I think the training is a little bit better if you want to be a manager. You’re given a bit more support once you become a manager, but back then, it just simply didn’t happen. 
But it’s also difficult to know how people are going to receive your words. I mean, we were talking about this before and the boss is, you know, sometimes he will say ‘I'd like you to do this’, and a young worker will say, ‘yeah, no, not really for me.’ And he goes ‘it wasn't, this isn't a workshop. This is, this is not a discussion. This is what I need you to do to do your job.’ And that can be construed in this day and age as bullying.  
A bit of banter between work mates, fine. A bit of banter with the wrong workmate? Not fine. 
It all has to be so nuanced, doesn't it? And I know that I have got the height of a rhinoceros, I know that I will go for the one liner wherever I can and sometimes that can be hurtful. So, I have tried to give younger workers, you know, when they feel that they might, I might have gone too far, a way of letting me know that. I know that I'm older, I've been around longer,  I can be bolshy, so I try to let them know that they can tell me if I'm a bit much. So far they haven't, and I hope that's not because they're not cowering in their crocs. 
I try to be mindful that we're all of different generations, that we all grew up with different expectations. But it must be incredibly difficult to manage when you are a manager with numerous generations of workers. When you need a job done. When people respond in different ways to different instructions.  
I have no doubt that there are some toxic, nasty, petty people who exist to make others' lives misery, but I do sometimes wonder whether some of these figures Are not toxic bullying but crossed wires.

Liam Dann: NZ Herald Business Editor says unemployment is increasing at a slow and steady rate

In 1 playlist(s)

Kerre Woodham Mornings Podcast

Social links

Follow podcast

Recent clips