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Workforce reaching maximum sustainable employment

The bank’s chief economist, Sharon Zollner, said the ratio of job advertisements to people looking for jobs was the highest ever. But how can we be at capacity when in March there were 122,871 people on the work-ready benefit type, Jobseeker Support, up from 64,000 in March 2016? While you might think of a workforce at capacity as being one where no-one is out of work, economists have a different view. It’s the “sustainable” bit that matters. When labour markets get very stretched, it puts pressure on businesses to pay more in wages, which can push up inflation. The Reserve Bank has supporting “maximum sustainable employment” as part of its remit.

auckland scoop co nz » Wanted ! New FTA Partners

Press Release – NZ International Business Forum New research commissioned by the NZ International Business Forum (NZIBF) identifies options for New Zealand’s next tranche of trade negotiations. “Trade is the country’s lifeblood and trade has boosted the economy during the pandemic” says NZIBF Executive Director, Stephen Jacobi. “New Zealand has done incredibly well over the last thirty years or so to open new markets around the world. There’s more work to do to finish existing negotiations, upgrade existing agreements and to make progress with key partners where FTAs have proved elusive like the United States and India. But the great wave of trade liberalisation that was ushered in after the conclusion of the Uruguay Round is coming to an end. That’s why we need to look to the future”.

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