261 more local people on dole | Manawatu-Wanganui News | Local News in Manawatu-Wanganui

New Government data paints a grim picture of the local job market, showing a 20 per cent spike in the number of people claiming the dole.

An additional 261 people were receiving the unemployment benefit in Wanganui at the end of 2011, a rise of 22 per cent. As of October 1, 2011, there were 1162 people claiming the unemployment benefit but by December 31 it had risen to 1423.

Data released this week by the Ministry of Social Development shows 5673 people in the Wanganui area were receiving a benefit by the end of December 2011.

The total figure has risen from 5496 at the same time in 2010, and showed an additional 292 people had begun to receive a benefit since the end of September 2011.

None of the large Wanganui employers the Chronicle approached during that period, including the Wanganui District Council and Affco NZ, were anticipating growth in staffing levels.

Meanwhile, a Statistics NZ review of 2011 published this week showed a substantial hike in the price of most food items.

Fruit prices increased by 30 per cent in the five years to June 2011, while vegetables were close behind, up by 27.7 per cent. The price of cheese jumped 51.3 per cent, with bread and fresh milk both up as well, by 40.9 per cent and 24.1 per cent respectively.

New Zealand in Profile: 2012, a report of key statistics released throughout the previous year, also showed wages had risen by 24 per cent during the five years, to an average of $898 a week and $24.78 per hour. In 2006, wages were on average $19.99 per hour.

According to Treasury, the official recession in New Zealand, the first OECD nation to suffer from the late-2000s downturn, occurred between October 2007 and March 2009, with a 3.3 per cent fall in the total dollar value of all goods and services produced in the country during that period.

Whanganui Employers' Chamber of Commerce president Jenny Duncan said it followed a significant boom time, adding that "these booms always end up in a bust".

"Production falls, therefore employment falls, prices drop, second-hand markets inflate ... times can be quite tough," Ms Duncan said.

However, there was a degree of cautious confidence in Wanganui enterprises.

Last month, six staff were laid off at Q-West Boat Builders, which managing director Myles Fothergill said was the result of a lull in business, given uncertainty about the 2011 general election result and earthquakes in Christchurch.

"Christchurch has had a massive impact on tourism in the South Island, and the bulk of our domestic work in the South Island has been in tourism."

But Mr Fothergill said the outlook for 2012 was particularly promising.

"We've had more inquiries in the last four months than we've ever had, most from offshore, and this is real business. We've tendered for a lot of work, some of which starts next week, and there is a lot more to come," he said.

But building consents have continued to fall, with the latest figures from Statistics NZ showing just four new homes were authorised to be built in Wanganui last November. The local Registered Master Builders' Association president, Warren Johnson, said 2011 was a tough year for the building industry.

"And I'm not sure anyone is hugely positive that they'll soon see an improvement," he said.

A builder for 22 years, he remembered a similar downturn in the late 1980s, which saw him laid-off while still an apprentice. He said the latest slump had encouraged builders to make sales and enhanced competition, making it a more affordable time to build.

Ms Duncan said Wanganui had one of the country's most diverse local economies.

"This gives us a split focus, but it does help to insulate us from the effects of some industry trends. We're not dependant on one product or sector. And we're not looking for, or expecting, another boom. What we're after is solid, sustainable growth."