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New Zealand is lagging behind its international peers in terms of economic growth and unemployment, according to a new study.
Key points:New Zealand is currently ranked as one of the world’s lowest in terms, according the latest OECD reportThe OECD said New Zealand’s unemployment rate is at 8.1%New Zealand has the highest unemployment rate in OECD countries, according a new reportThe report, based on survey results, said New Zealander employment growth has been on the decline since the start of this year, while unemployment in New Zealand has risen by almost 2.5 percentage points.
The OECD has been calling on the government to spend more to attract businesses to the country.
It said there was evidence that this was not being captured by the tax system.
“New Zealand’s growth prospects are on the right track but it is not yet on a path to sustained growth,” the report said.
“The growth outlook is not rosy for a country with one of most progressive tax systems in the world.”
“The new Zealand economy continues to lag behind its peers, with the unemployment rate at 8,1 per cent, and labour market conditions deteriorating further.”
In order to sustain this growth momentum, New Zealand needs to ensure its economic recovery continues to drive job creation.””
To meet its ambitious growth targets, New Zealanders must be prepared to work harder and harder for a better life, including for those who are least able to find work,” the OECD said.
New Zealanders currently work in the lowest-paid jobs, according OECD figures.
The report said while employment growth in New Zealands economy has been improving, the unemployment gap is widening.”
While unemployment is falling, it remains significantly higher than in many other OECD countries.””
The employment gap is now higher than it was in the late 1990s.”
“While unemployment is falling, it remains significantly higher than in many other OECD countries.”
The OECD’s report said there were several causes for the problem, including an ageing population, weak manufacturing and the country’s financial woes.
The report found the economy has not been able to grow as quickly as other OECD economies due to a lack of skilled workers.
“To be able to create jobs and boost employment growth, New Zegans economy needs to be able and willing to spend, and the lack of private investment is making it hard for them to do so,” the government said.
The new report comes after a major survey from the OECD found New Zealanders were not doing enough to attract business.
In April, the government published its long-awaited economic plan, which will set out the government’s fiscal path for the next five years.
Its economic policy will be released in December.