29 Nov 2013

Unemployment fall to 4% predicted by 2021

2:34 pm on 29 November 2013

The Ministry for Business Innovation and Employment is forecasting a fall in unemployment to 4% by by 2021.

The current unemployment figure is 6.2% of the workforce.

The ministry says one reason for this trend is the ageing of the population, which will lead to the number of retiring baby-boomers rising from 50,000 a year in 2016 to 70,000 a year in 2021.

This will diminish the supply of available workers and increase the chances of employment for those without a job.

The ministry report says this trend will drive up wages, which will in turn encourage capital investment in labour-saving devices.

That, in turn, will bring a rise in productivity.

The report adds the strongest employment growth is expected in the primary sector, along with some manufacturing, and the service sector, which includes health, cultural and personal services.