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LINDSAY MITCHELL: Wellington takes a hammering (though it's not evident from MSD's calculations)

My blog posts often result from a question popping into my head.


In this case, given all the gloom and doom around public servant lay-offs in the capital, I wondered, "How big is the growth in Jobseeker benefit receipt in the Wellington region and how does it compare to other regions?"


To answer this I accessed the latest Jobseeker Support data at MSD. Their chart calculates the percentage of the working-age population (aged 18-64) receiving Jobseeker Support in each region and compares Sept 1, 2023 to Aug 30, 2024:


 


That's interesting, I thought. The year-on-year growth (final column) is highest in Auckland, Central and Waikato. Comparatively, Wellington isn't faring that badly.


But hang on. To get a reliable percentage, a reliable fraction is required. The denominator (middle column) is the 'Estimated 18-64 resident NZ population'.

Note that the chart purportedly uses June 2023 for both calculations - 'Reported week' and 'Same week last year.'


Yet Wellington and Central have changed population numbers - Wellington's increased while Central's decreased. So the column headings are at least partially incorrect.


The official published numbers are totally unreliable.


To answer my question, I can however set up my own graph showing absolute numbers on Jobseeker Support by region, and the percentage change from base, year-on-year. At 27 percent annual growth, much higher than any other region, Wellington does not look pretty. But neither does Auckland, in terms of absolute growth:



Still, we have been in much tougher times. In June 1993 for instance, 200,000 people were reliant on the equivalent benefit but in a population around two million lighter.


That isn’t much consolation to those losing their jobs today but let’s hope that the unavoidable correction to Labour’s six years of over-cooking the economy with borrowed money doesn’t come with too much more pain.


Lindsay Mitchell blogs here

2,015 views23 comments

23 Comments


After providing life support to Auckland businesses for three years, ultimately seeing them fail, and knowing the reasons for the disaster were located in Wellington and the swamp, I cannot really find it in my heart to offer sympathy. Simply I would offer the departing civil servants the old Latin (I believe) quote - "Live with Dogs, get fleas".

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Peter Y
Peter Y
Sep 11

I can think of reasons why that second set of numbers in the second grouped column of stats might be significant, but who really knows until it's accuracy and intent is clarified. What it does prima facie indicate that one or more public servants have erred and/or are not doing the job they are paid for, which surely is to produce statistical data that is meaningful and accurate, as opposed to unreliable and contradictory.

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The real issue is whether or not we are receiving proper value for the costs of employing so many bureaucrats and civil servants. By "we" I mean the productive, working, wage and salary earners whose daily efforts provide the money that the people in government spend and also have to service and eventually repay what they borrow.

Business is most accurately defined as transactions between willing buyers and sellers of desired goods and services.

Most people sell their time and labour in return for the income they need to live on. These productive working people are also the main consumers of the goods and services that are provided and purchased. Government bureaucrats and employees are not required to provide desired or valued goods…

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Replying to

Rex I often wonder what the real immigration agenda is. Immigrants as individuals are generally decent people that want opportunities for a better future. Problems occur when too many new people are introduced in a short time. That makes it more difficult for them to integrate and be accepted by the local people. It also increases the supply of workers and the demand for housing as well as requiring more infrastructure and public services. The NZ birthrate is too low to maintain a stable population and, with so many young people leaving, our population should be declining instead of increasing. What would be the optimal population for New Zealand? Is there a way of estimating or calculating it? Has increasing the population been beneficial for the majority of New…

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ron
ron
Sep 10

Not surprising with public service bloat being reduced somewhat. Which at some point will no doubt also be reflected in knock-on effects on other businesses. However, we ain't seen nothing yet. If government makes use of it properly we should also expect AI to replace very large numbers of public service jobs over the next few years, to the extent that one wonders what Wellington is going to be left with to do for a living.

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Replying to

During my years in the public service, the PSA, headed by Richard Wagstaff, was pretty bloody useless . With little concern for its members

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ron
ron
Sep 10

Administrator, am sure you're working on it but for me at least the Wix problem has recently become seriously worse. Are Wix seriously trying to resolve the problem?

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Tall Man
Sep 11
Replying to

Maybe WIX employs some of those redundant ex public servants!

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