Regional unemployment statistics are notoriously volatile but the long-term trend can be used to track labour force data.
Statistics New Zealand's latest release showed Otago had 119,400 people employed in December, up nearly 3000 from September. But the number of people unemployed was up slightly at 4900 from 4500 in September. The working age population increased by 1000 to 181,000.
Importantly, the labour force participation rate increased to 68.7% from 67.4%. While the unemployment rate rose slightly, more people were in work as employers took on more staff.
Otago-Southland Employers Association chief executive Virginia Nicholls said although the rising unemployment rate might look bad, the rate of participation of the local workforce had increased, which was good news.
''This increase is greater than the increase in unemployment. This is all a sign of a growing economy.''
The rate of participation in the workforce had increased because more people believed they had a greater chance of getting a job, she said.
For employers, increased participation meant employers had a greater chance of finding suitable staff for their business, Mrs Nicholls said.
Southland's unemployment rate fell to 5% from 5.3% in September but was the same as in June.
Southland's participation also rose to 75.9% from 75.3% as the number in work increased by 2300 to 56,000.
In Canterbury, unemployment fell to 3.7%, the participation rate rose to 73.1% and the number of people employed rose to 344,200 from 335,900.
