Southland and Otago's unemployment remains well below the national average.

Statistics New Zealand's (SNZ) December quarter figures released yesterday shows the nationaljobless rate was 6.3 per cent. In Southland, the rate is 5.1 per cent.

SNZ's household labour force survey also shows Southland's employment has more than kept pace with population growth.

The number of people in the region's estimated labour force grew 2500 in the quarter to 59,000. The region's estimated working-age population was 79,800.

The population in work rose from 69.2 per cent in 2010's December quarter to 71 per cent in 2011's final quarter, with 20,100 people not in the labour force. Those unemployed rose 300, or 0.3 per cent, to 3000, on the previous quarter.

Otago's unemployment rate was even lower, at 4.8 per cent. There were 6400 unemployed and the employment rate was 72.5 per cent of the working age population.

Nationally, the unemployment rate fell from 6.6 per cent to 6.3 per cent. There are 3000 more employed people in New Zealand, than in the previous quarter.

The number of employed people kept pace with the growth of the available labour force, SNZ said. But the employment rate – the percentage of the population in work – remained static at 63.9 per cent for the third consecutive quarter.

The Government's minister for employment, Stephen Joyce, lauded the steady progress shown.

Labour's employment spokesman, Su'a William Sio, said the employment rate was only just keeping up with the working age population's growth. He attacked the Government, saying it had failed to provide jobs for the young.

The survey calculated the figures through a representative sample of 15,000 households.