1) Developing especially niche markets/ products and making us less depended from other countries.
2) With the support of government/ private sector there is potential for NZ setting up and improve industries : http://www.henderson.com/sites/henderson/sri/approach/topdowntheme/overv...
But first of all with the support of government/ private sector/ media developing a decent culture and spirit of life of the public - away from a purely consumption culture.

What to do about unemployment?
No matter what it is collateral damage after a rescission or fiscal turmoil, as markets realign themselves...There has never been or never will be a soln to stopping it.
Accepting that a different approach should be taken...and it a hard call..like general having to right of troops in a battle Field.
If measures are taken , too early, in a panic..a lot of money will be wasted that would be better served later on.
Up skilling is not a soln..
A country can only support a given number of graduates in any feild... maybe thats why a lot had left the country in previous yrs??
Is this why in India, help desk workers have degrees?
When unemployment increases this hit skilled, educated work force also, IT managers highly experienced and qualified take on jobs well below their expectations...A drainage engineer becomes a digger driver... this in effect up skills our labour force, rather than sending the digger driver to uni.
We are still pilling out graduates from our uni s..they cant compete with experienced unemployed mangers on diggers...and cant go off shore because the same unemployment exists there.
When things start to stabilizes, the Drainage engineer on the digger now gets promoted to site manager and so on up again.
In the mean time the digger driver has been unemployed...the question remains what do we do with this lower skilled/unskilled part of unemployment stats. when there are no jobs?...Flip burgers part time?...oh thats where the unskilled school leavers go, what do we do with them?
The only soln in previous big recessions (1880s 1930s) is send them off to the colonies, have a few wars, or one big world war...the trouble with this is a world war is not likely and there are no more colonies.
I dont think looking back to history, or philosophies this time is going to give an answer, but rather show that we cant use them in the 21 ist century.
Maybe we need a whole new approach??
Reduce things like health budgets...tax processed foods, un tax fresh foods, increase demand and production and employment in these fields.
I dont have the answers, all I do know is we cant stop unemployment, maybe reduce it slightly, and what has happened worked and not worked in the past will not work this time.
Eventually one of 2 things will happen at the end, we have, like India a huge poverty unemployed sector remaining, and an over educated work force, or (less likely, things will return to a 3 to 5% unemployment level either way, with a huge social collateral damage (Depression) in the mean time.

shuttle Says:
"What I can't understand is if NZ has a reported 6% unemployment rate and it is agreed that this will rise, why is immigration now increasing?
"
Because our unemployment is less else where, unlikely to reach as high as already or predicted in may other countries....we are still an attractive target.

and mortgagee sales are at a record....

http://www.stuff.co.nz/national/2815354/Mortgagee-sales-hit-fresh-high

Wally: They can usually fix the monthly number eg Clinton did it...only those actually looking for work are counted as un-emplyed....so the real US unemplyed could be closer to 12~16% and not9%+.....

Here they could do the same but the thing to watch (in most things actually) is the trends....they can hide /fiddle totals, but they cant hide trends as easily..But a piece I picked up on the other day was taking the norm of seasonally adjustment of the numbers out and then reporting the USA house sales were stable/up...its fudging...but trends should pick that out...I find it amazing the lengths some reporters/Pollies/economsists will go to to make the numbers tell what they want to say....

W.Kunz: totally agree, made in NZ is seen as a quality item, that means a high margin can be sustained on that product. We cant complete on mass made shoddy cheap crap, any NZ business trying to do that and relying on dumping the minimum wage is plain stupid IMHO. We dont need to complete on producing high quality items that command a price premium, our wool made into high quality garments seems to be a case in point, dont sell the wool, value add and sell a superior end product....Warehouse $20~$30 for a cheap acrylic jumper V $80+ for a real wool made in NZ item....NZ is small enough to be boutique and agile...pity so many of our businesses arnt.

It must be remembered that since the new statistical methodology imposed upon us with our liquidation and refinancing terms of 1984 to be deemed employed you only have to have worked for 1 hour of paid employment in a week of survey as opposed to the old 30 hours. If you take into account those that are deemed to be employed, sometimes in more than one job, but still cant earn enough to live with dignity, even though their work ethic is unquestionable, it is noted by many that the number of underemployed, those seeking more work to live with dignity, is more relevant in terms of decreasing community stability than those deemed unemployed under the current methodology, and that number is much larger than the unemployment figure.

The privately debt based monetary system still adheres to the slaveminded ideology that if a commoner does not work as many hours as they are physically able they are not etitled to exist with dignity or at all. If they dont work or have not saved enough before they can no longer, the law of the jungle should apply. In the eyes of the slaveminded there are no contingency plans for when modern technology could allow much more leisure time for all. The slaveminded say "but how will the slaves afford to borrow our created credit or buy our products if they are not working for as many hours as we can get out of them". They cant even comprehend, provided sustainable physical and human resources are taken into account, a national dividend could be issued to make up the gap between purchasing power and available production. Population levels would have to also be carefully monitored if the human species is not to suffer the same fate as the rabbit or red perch communities when left to breed until they exceed the available resources to feed their exploding populations until regulated by natures famine. I say we have had the ability to reason and record for 10,000 odd years now, surely we can do better than mindless animals without the ability of reason.
The human community under civilised leadership has the potential to be both sustainable and stable.
I like this quote of Ghandi I came across "Earth provides enough to satisfy every man's need, but not every man's greed"

or this from John F Kennedy in a 1963 speech to the UN:

"The contest will continue--the contest between those who see a monolithic world and those who believe in diversity--but it should be a contest in leadership and responsibility instead of destruction, a contest in achievement instead of intimidation. Speaking for the United States of America, I welcome such a contest. For we believe that truth is stronger than error--and that freedom is more enduring than coercion. And in the contest for a better life, all the world can be a winner.

The effort to improve the conditions of man, however, is not a task for the few. It is the task of all nations--acting alone, acting in groups, acting in the United Nations, for plague and pestilence, and plunder and pollution, the hazards of nature, and the hunger of children are the foes of every nation. The earth, the sea, and the air are the concern of every nation. And science, technology, and education can be the ally of every nation.

Never before has man had such capacity to control his own environment, to end thirst and hunger, to conquer poverty and disease, to banish illiteracy and massive human misery. We have the power to make this the best generation of mankind in the history of the world--or to make it the last."

and Walter, remember when they used to build apliances out of quality components that would last twenty years, but all that had to change, they build appliances out of crap to make them last on average three years, all to feed the perpetual growth model they claim will provide on going stability. They couldnt allow the commoners the freedom of a subsidised rest period that would allow them the reward of the fruits of their labour, no we have to have a system that keeps them at heel by chewing through the worlds resources at an unsustainable rate under the guise of providing continuous employment for the commoners lest there will be no need for them.

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