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No.170 | 12 August 2002 | Essential Information on an Essential Issue |
of key events over the last few weeks. STATISTICS THAT MATTER OVERWORK BANK TO TOP-UP PAID PARENTAL LEAVE TEACHERS LEAVING FROM PRIMARY TO SECONDARY THE FOREIGN STUDENT INDUSTRY INTERNATIONAL DEMAND FOR NURSES GROWS LONGER WORKING LIFE MEXICANS WAVE (GOODBYE) TO JOBS SOMAVIA: GLOBAL JOBS DEFICIT LAST Letter NEXT Letter Download this issue as a PDF file
Index to Features
11 July 2002Vodafone NZ managing director Tim Miles says the jobs of the company's 1,200 employees are safe and there are no plans for lay-offs. His comments come after Vodafone Australia announced that the two companies are considering merging their support centres in Sydney and Auckland, eliminating hundreds of jobs. The Australian unemployment rate rises to 6.5%, accompanied by a significant decline in the number of full-time jobs. 12 July 2002A record 51,535 people found jobs (lasting at least three months) through Winz in the year ending June 30. The number is 18% higher than the number of placements made during the previous year. 15,600 beneficiaries may have had their benefits illegally cut-off between 1996 and 2000 because Winz incorrectly interpreted their living arrangements as "in the nature of a marriage". But these people will have to wait until next month before they find out if they will be reimbursed the money that they were entitled to. By then it will be 14 months after the exposure of the discrepancy in the Winz policy, and for some it will be six years since the mistakes were made. 14 July 2002City Forests announces it is to build an export-based wood processing plant near Dunedin. The council-owned business will initially employ ten people and expects to increase to 25 staff within three years. HortResearch cuts 39 jobs. The Crown Research Institute is to phase out some projects and develop more commercial partnerships with others. Association of Crown Research Institutes president John Hay calls the redundancies the largest shake-up in the science community since contestable research funding was introduced in the early 1990s. 15 July 2002An EU study finds that one in three European workers suffer from stress. Work stress cost EU businesses $19.7 billion last year and contributed to anxiety, depression, heart disease and cancer in workers. The British manufacturing workforce shrank by 10% over the past three years. 16 July 2002The NZ Consumer Price Index rose 1% in the quarter to June. The annual inflation rate was 2.8%. 17 July 2002Jack Links beef snack manufacturing plant in Mangere is launched. Most of the 100 staff were previously unemployed and 90% are Pacific Islanders. The company expects staff numbers to grow to 200 by the end of August and to 400 within two years. Minister Steve Maharey tells Business NZ that the Labour Party would not introduce a fourth week of annual leave for workers, nor would it put it on the table in post-election coalition talks. 18 July 2002Deutsche Bank economists are predicting job growth in NZ to slow to 19,000 new jobs in the next year, with economic growth expected to be at around 2%, or about half of what it was this year. 20 July 2002An increasing number of companies are doing criminal record checks on job applicants. The number of requests for records from the Department of Courts has nearly trebled between the 1997-8 and 2001-2 periods, primarily from prospective employers. 21 July 2002AMP research finds that before beginning to repay their loans, many students say they perceived their loan as "money to burn" and that they had not thought through the consequences of having a loan. Former US president Jimmy Carter says American isolationism and the widening gap between rich and poor countries are creating hatred towards the US. 24 July 2002A call for the next government to wipe out child poverty comes from the NZ Council of Christian Social Services, the Public Health Association, the Federation of Voluntary Welfare Organisations and the Child Poverty Action Group. 25 July 2002Maori are less likely to get a Special Benefit than Pakeha and as much as nine times as unlikely if the Winz office in Waitara services them. "Widening the Gaps: Ethnic Bias in the Administration of Welfare to Those Most in Hardship" is critical of Winz service delivery to Maori. Prepared by the Wellington Downtown Community Ministry, the report compares the ethnicity of people who met the criteria for a Special Benefit but were not awarded one. Pacific Island women are the group worst affected by student loan debt according to the NZ University Students Association. On average it would take a Pacific Island woman 33 years to repay the debt she acquired getting a three-year degree. 26 July 2002After two years at record levels, farm incomes are expected to drop this year and analysts say this will slow the overall NZ economy. The West Coast Development Trust has made loans totalling $4.5 million over its first 15 months. The loans were made from the $120 million that the government put into a local authority trust for economic development on the West Coast when it legislated against the commercial logging of native timber. The biggest loans have gone to mining and timber production companies and the nine businesses that received loans say they plan to create 150 new jobs 27 July 2002NZ Election Day. Labour wins the most seats but will need two coalition partners to form a government. 29 July 2002The US Congress supports a law change that gives its president a more independent hand to negotiate international trade agreements. This is expected to result in the US developing more "free trade" deals. 30 July 2002Business confidence falls according to the National Bank monthly survey. The number of unemployed Japanese workers has risen every month for the past 15 months and official unemployment is 5.4%. The Japanese workforce participation rate is 61.6% 2 August 2002The National Data Matching Centre has detected $43 million in Winz benefit over-payments and $31 million in Winz client and staff fraud this year. 4 August 2002The Ministry of Agriculture and Forestry is assessing support for a co-ordinated approach to tackling the skills shortages in the agriculture and horticulture industries. 5 August 2002Australian job ads were slightly down on last month but are still 6.4% up on this time last year. ANZ economist Saul Eslake says that Australian employment growth appears to have peaked but does not expect employment numbers to fall or unemployment to rise in the immediate future. 6 August 2002Jobs ads in NZ were 1.5% lower in July than they were in June. ANZ economist David Drage reads the slight drop as a reflection on an increased availability of workers due of greater immigration rather than a lack of demand for workers. Drage says job ads remain at levels consistent with further employment gains and he says the unemployment rate is likely to fall below 5% during the second half of 2002. 8 August 2002The Australian unemployment rate drops to 6.2% even though the economy recorded a loss of 28,300 jobs last month. The drop was due to a greater number of people leaving the active workforce. The Australian labour force participation rate is now 63.3%. 9 August 2002The NZ employment rate is at 5.1%, the lowest level for 14 years. See feature in this issue.
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STATISTICS THAT MATTER unemployment has dropped in all the categories for youth, the mature, the long and the very long term unemployed. the unemployment rate for Pacific Island people has remained the same as last quarter but has risen over the year from 9.1% last June to the current 9.7%. Maori unemployment has risen in the last quarter from 10.8% to 11.0% but is still lower than it was a year ago. there were 57,000 new jobs created in the last year, an increase of 3.1%. full-time employment grew by 1% (or 14,000 jobs) in the quarter while part-time employment dropped by 1.2% (or 5,000 jobs). the labour force participation rate has dropped and is now at 66.7% the greatest regional reduction in unemployment has been in Northland. While the region still has the highest unemployment in the country, the rate reduced from 10.5% to 8.4% this last quarter. Official jobless figures in Northland (those without a job and wanting a job) dropped from 17.5% to 13.8%.Source — The Household Labour Force Survey June 2002 quarter commentary by Statistics New ZealandOVERWORKInterim Report of the Thirty Families Project: The Impact of Work Hours on New Zealand Families a report commissioned by the NZCTU, July 2002, can be viewed in HTML format: www.union.org.nz/publications/1027290655_21731.html Source — New Zealand Herald 22 July 2002 “Overwork damaging families, say unions” Mathew Dearnaly; Workers Online issue 146, 26 July 2002 “The right to life” by Noel Hester; The Dominion Post 24 July 2002 “Longer working hours take toll” Grant Fleming, “The Dominion Post 27 July 2002 “All work and no play” Diana McCurdy; New Zealand Herald 24 July 2002 “Loyalty stems from life, work balance” Ashley Campbell;BANK TO TOP-UP PAID PARENTAL LEAVESource — Sunday Star Times 23 June 2002 “Bank to pay 12 weeks parental leave” by Miriyana Alexander; New Zealand Herald 24 June 2002 “Move to offer new parents full pay” by Martin Johnston, Rebecca Walsh, Mathew DearnaleyTEACHERS LEAVINGLeaving teacher Simon Walter told the Weekend Herald that money was not the biggest issue for teachers. He says that even $10,000 more would not entice him to stay. Walter: “It would be good for the teacher who are staying, but it won’t effect my decision. What I think would be better would be to see a workload reduction of about a fifth.” Other new teachers say they are leaving because they can’t earn enough to pay-off their student loans. Some say they only earn enough to pay the interest on their loans and are looking for work that pays enough to reduce the principle as well. Source — Weekend Herald 15-16 June 2002 “Those who can, leave” by Dita De Bono; The Dominion Post 3 August “Learning about a better life elsewhere” by Juli e ClothierFROM PRIMARY TO SECONDARYTeachNZ manager Irene Lynch defends the scheme saying that only experienced primary school teachers who had a minimum of one Stage Two paper in the subject they intended to teach would be enrolled in the ten-week course. Lynch: “All they have to do is learn the difference between teaching older and younger students.” However, a recent Post Primary Teachers Association survey found that 25% of schools are forced to use teachers to teach outside their subject specialty.
THE FOREIGN STUDENT INDUSTRYThere were 52,696 fee-paying foreign students in NZ last year, 85% of them from Asia. More than half attend private courses but many of them attend tertiary institutions and 10,555 of them are at secondary and primary schools. The parents of foreign school children pay about $10,000 in fees per year for their child to attend school and these fees add as much as a third to the operations budgets of some schools. These schools tend to sport new classrooms and upgraded language and technology suites as well as additional teachers which they say benefits more than just the foreign students. Minster of Education Trevor Mallards says that operations grants for schools will never meet community expectations but inflation-proofing the annual grants, which the government has done, was the most effective form of defence against dependence on foreign fee-paying students to augment budgets. In some schools foreign student numbers represent 10% of their roles and Mallard agrees that NZ schools have just about reached their capacity. However, Education NZ (a government agency responsible for foreign student education) says that the foreign student industry could grow to three or four times what it is now. Source — North & South July 2002 “Schools for sale” by Nicola Shepheard; Weekend Herald 18-19 May 2002 “Lesson in foreign exchange” by Warren Gable and Graham Reid; Sunday Star Times 19 may 2002 “Billion-dollar student boom” by Greg Ninness; Weekend Herald 1-2 June 2002 “Mean host jeopardise” by Geoff Cumming; New Zealand Herald 12 June 2002 “Education industry revving up” by Caron Taurima; The Guardian Weekly July 2002 “Ireland rise to Chinese student ‘flood’” Marie O”Halloran and “Student visa shocks”, Citizenship classes”, “Japan conversation”, “Slovak training” by Max de Lotbiniere.INTERNATIONAL DEMAND FOR NURSES GROWSSource — Guardian Weekly July 25-31 2002, “Alarm as US woos nurses from NHS” by John CarvelLONGER WORKING LIFEDuring the last two decades the trend has been for both males and females in the over 45 year old age group to have a diminishing workforce participation rate. But the latest Australian figures show that workforce participation for older workers has increased over the last decade and for the 55 – 59 age group it has risen sharply from 54.1% to 61.2%, getting closer to the participation rate of the general population. Source —The Melbourne Age 29 may 2002 “Grey power digging in at work” by Tim Colebatch; Weekend Herald 15-16 June 2002 “Job boom for baby boomers” BloombergMEXICANS WAVE (GOODBYE) TO JOBSThe shift in manufacturing from the US to Mexico was boosted by the North American Free Trade Agreement (1994) and by the fact that American workers are paid six to ten times more than Mexicans are to do the same work. Now, manufacturers are being drawn to Thailand, Vietnam, China and Indonesia where workers are often paid just $US15 a week, which is less than what a Mexican is paid to work one day, and less than many American factory workers would get for an hour. The wage differential is so great that, at current fuel prices, it is cheaper to manufacture goods in Asia and transport them across the Pacific Ocean than it is to manufacture with the cheapest labour in North America. Source — Guardian Weekly 11-17 July 2002 (The Washington Post) “Mexican workers become victims of their success” by Mary JordanSOMAVIA: GLOBAL JOBS DEFICITThe ILO estimates that about 500 million new jobs will need to be created mainly in developing countries over the next decade just to cope with the young people and women entering the labour market. Somavia: “No one is producing a scenario for the next decade based on the need to fill this yawning deficit.” Somavia is calling on public authorities to try to harness the potential of informal workers and small businesses, and to provide a better social safety net through minimum income schemes. He also calls for greater localized development initiatives as well as new ways of guaranteeing social protection and support for the informal economy. Somavia: "Employment continuity is an increasingly fragile foundation for the social protection system”. Source — Tehran Times 5 August 2002 “Globalisation’s inability to create jobs fuels mass migration: ILO chief” |