'Modest' increase in unemployment in Christchurch

10:52 pm on 17 May 2011

About one third more people in Christchurch are receiving unemployment benefit compared to last year, the Government says.

Some 6000 people in the city are getting the benefit.

Prime Minister John Key says the increase has been extremely modest and far lower than many had predicted in the wake of the February earthquake.

He says the Labour Party had suggested there would be 20,000 claimants.

Mr Key says the reason that hasn't happened is that there is a lot of activity in Christchurch which is providing employment.

He says the stimulatory effect of the rebuilding of the city is already in evidence.