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Not a jobless recovery, just a slow one

Rebecca Williams, David Gillmore, Nicolas Groshenny

We compare the current recovery in the New Zealand economy with the recoveries from the previous two recessions, focusing on the developments in the labour market. By way of comparison, we contrast the New Zealand situation with that of the United States, during its current and previous two recessions. Our main findings are (1) the current recovery in New Zealand has been slower than following previous recessions; (2) during this period the labour market has been subdued and (3) growth in employment (and hours) has been higher than would normally be expected, given the rate of GDP growth, implying a lack of productivity growth.