Deregulation grows jobs

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Deregulation grows jobs

A new report by the OECD shows that in the two decades to 1998, New Zealand topped the OECD in job growth.

The report* says the deregulation of the NZ economy between 1978 and 1998 created around 50,000 extra jobs.

Business NZ Chief Executive Simon Carlaw said this is the ‘top half of the OECD’ performance that should be considered carefully by all political parties considering their growth strategies this year.

“Many New Zealanders fear deregulation leads to job losses, but the OECD report shows that it increases job opportunities overall.

“While some existing jobs in protected areas may disappear as a result of deregulation, overall employment security (the relative ease of finding a new job) increases significantly. 

“There is no need to fear removal of restrictions in protected industries if the end result is a significantly greater number of jobs in general,” Mr Carlaw said. 

*The Cross-Market Effects of Product and Labour Market Policies can be found at www.biac.org under The OECD Economic Outlook no.70