More at work in North | Northland News | Local News in Northland

Northland's economic woes took a turn for the better yesterday, with figures released showing a 2.5 per cent drop in the region's unemployment rate.

Arguably the most pleasing result from the June quarter Household Labour Force Survey, the drop brings Northland on par with Auckland's unemployment rate of 7.3 per cent.

While the two northern regions share the highest unemployment rate in the country, Northland's big improvement sees the region draw within striking distance of the national average of 6.5 per cent.

Unemployment figures released by Statistics New Zealand for the March quarter had Northland pegged at 9.8 per cent, almost 2 per cent higher than any other region in New Zealand.

Northland Chamber of Commerce chief executive Tony Collins said the latest figures were good news for Northland.

"It's a great result because until the recession hit, Northland had been doing really well but then we fell back," Mr Collins said.

However, he warned about using the figure in isolation from other data.

"We want to know whether it's from people giving up seeking work, or they've found work, or they've moved overseas," he said.

Northland did not have a boom or bust economy, so an increase in employment is likely to happen through small- and medium-sized enterprises (SME).

"It's going to be those SMEs taking on one to two staff over the next few years," Mr Collins said.

Seasonal variations in the horticultural sector could also affect the unemployment rate.

"In the Far North, the avocado season will make a difference."

Work and Income New Zealand Northland labour market manager Carol Barnett agreed seasonal variations can affect the figures but said the impact in Northland is usually not large.

Ms Barnett said demand for workers in the forestry industry continued to provide new employment opportunities for Northlanders.

"In the last 12 months we have met demand for workers by contracting FITEC to run forestry training programmes with 90 per cent of the participants going into full-time work."