The job market is showing signs of recovery, with a slight increase in working hours in the September quarter, a positive development after almost two years of consistent decline. This could be a result of employers holding onto their staff and managing costs by reducing their hours, a strategy that supports businesses to scale back up quickly when demand returns. However, the overall job market remains weak, with 160,000 people looking for work and almost 15% having been searching for over a year. Despite this, there are some green shoots emerging, with New Zealanders working an additional 2,700 hours in the average week in the September quarter, up almost 1% on a seasonally adjusted basis. This could indicate that firms are starting to call up part-time workers to do more hours in response to, or in anticipation of, increased demand. Economists are cautiously optimistic, with some suggesting that the labour market could be turning a corner, while others warn that the hours worked measure can be volatile and isn't a great indicator of GDP. Political groups have differing views on the data release, with some viewing it as negative and others suggesting that the government needs to adopt certain tax policies to address rising unemployment. Despite the mixed opinions, there is a general consensus that the labour market will improve slowly, with a lift in hours worked and paid.
