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A bit lacuna in unemployment to 6.7 per cent shows the country is not on the road to rise and the Reserve Bank should hold interest rates well into next year, a leading economist says.

"It continues to be a lengthy slow haul to turn these numbers around," Berl chief economist Ganesh Nana said. "Unemployment is common in the wrong direction."

Unions said the rise from a revised 6.4 per cent was alarming and "unacceptably lofty".

There were 9000 more unemployed in the quarter, taking the total to 160,000, according to Statistics NZ. Employment increase was a modest 0.4 per cent.

Outside Canterbury the market was specifically weak, with jobs down 0.3 per cent, while Canterbury jobs surged almost 5 per cent in the quarter. Nationally, hours worked were up reasonable 0.1 per cent.

Nana said that while employment rose in yesterday's figures, that was in part-time industry, which was not a good sign, although there were signs of building and construction work numbers getting some grip. "The economy is waiting for rebuild effort in Christchurch to get some serious momentum," he said. "That's the one trend we are holding out for as the circuit-breaker to get us back on to the road to recovery.

Source: Stuff.co.nz

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