New Zealand is leading the OECD in another one of those quality-of-life type surveys, only this one isn’t something you’ll hear too much bragging about at the emigration fairs.
If you are emigrating to New Zealand and have older children (aged 15-24) in your family you owe it to them to find out more what you’re getting into before you leave. How sure are you that you’ll be able to find work and hold on to it?
Youth unemployment is escalating in New Zealand as more and more young people struggle to find work or apprenticeships. The true picture of job shortages is likely to be even worse because so many unemployed people are leaving New Zealand to find work in Australia. The ratio of unemployed youth to employed adults is more than four – this means they’re four times more likely to be unemployed than people aged 25-54.
From The Economist:
The ratio of youth to adult unemployment worsens (see graph above)
THE global recession has hit young workers particularly hard. In the mostly rich countries of the OECD, the youth-unemployment rate (the unemployed as a proportion of the labour force aged 15-24) increased by 4.9 percentage points between 2007 and 2009, to 18.4%. By the second quarter of 2010 it had risen to 19.6%. Young people typically struggle to gain employment and are the first to be laid off; in nine countries more than one in four are now jobless. Spain has the highest youth-unemployment rate, at 42%, more than twice the unemployment rate of adults aged 25-54. In New Zealand, Sweden and Luxembourg, the youth-to-adult unemployment ratio is more than four. Germany has the lowest ratio (1.3), largely thanks to its successful apprenticeship system. The OECD warns that recovery will be slow and forecasts that youth unemployment will still be around 20% by the end of 2011.
NZ’s Economic Recovery Stalls
What’s worse is that there are no signs that the situation is going to improve any time soon. New Zealand narrowly missed falling back into recession during the last quarter and its fragile recovery has ground to a halt. From the Financial Times
“The southern nation is in danger of slipping back into recession after its economy contracted by 0.2 per cent during the third quarter.
The unexpectedly weak gross domestic product figures for the three months ended September released by the government on Thursday cap a difficult year for the country. The strength of the New Zealand dollar has eroded exports, an increase in the goods and services tax has hit the retail sector, and an earthquake near the city of Christchurch in September caused massive disruption and insurance losses estimated at more than $4.5bn.
New Zealand was one of the world’s first advanced nations to enter recession in early 2008 and the economy contracted for five consecutive quarters. Its economic fortunes are in contrast to those of Australia, its top economic partner which managed to skirt recession…” Read the full article here
We flagged up NZ’s youth unemployment problems back in July this year:
Thinking about emigrating to New Zealand because it’s a great place to raise kids?
Think again because according to Labour’s youth affairs spokeswoman, Jacinda Ardern, more than 70,000 people in the 15 to 24 age group are not at work, or in education or training and youth unemployment is a ticking timebomb.
As far as we know, there are no figures for the number of people in that age group that have left New Zealand to find work, or study abroad.
Read the report here….