Job creation in Manawatu is not keeping up with population growth and continues to have an above-average unemployment rate.

According to Statistics New Zealand's latest data, the Manawatu-Wanganui region's unemployment rate remained at 7 per cent, while nationally, unemployment rose to an 18-month high of 6 per cent in the September quarter.

While the national increase was expected, there was an alarming drop in the number of employments. There were 11,000 fewer people employed than in the June quarter, marking the first quarterly fall in employment in three years.

Palmerston North City Council economic policy advisor Peter Crawford said like the national figure, locally unemployment would be following the same trend.

With Australia's economy suffering, residents were less likely to move overseas for work.

"Those people staying in the work force, who might have been going to Australia, are making it harder for those coming into the workforce."

Between February 2014 and February 2015, almost 1100 jobs were created in the region, however it was not enough to match population growth, Crawford said.

An aging workforce also contributed to less jobs available.

"Palmerston North was a little bit weak, because there were some jobs being taken out in some sectors with high levels of casual employment."

However those in full-time employment, had experienced a boost in hours and pay during the past quarter.

Palmerston North MP Iain Lees-Galloway said there was a lack of interest and investment from the National government.

He said prospective opportunities for business and employment were not just limited to agriculture and research, as the city was in a good position for hosting events and had potential to be a transport and distribution hub.

He signalled Food HQ as a major investment opportunity, as the Government would be able to pursue a number of options to help grow that business.

Although the Government had invested time into a regional growth study, which was released in July, they had to invest financially as well, he said.

"It's not good enough just to write a lengthy document and tell us then to get on with the job."

He said the study was in danger of becoming a "dust collector", if the Government solely relied on regional leaders to pursue it.

Youth transition service Start has found over the past few years unskilled employment opportunities were becoming harder to find.

Co-ordinator Peter Butler said they primarily encouraged the youth they worked with to gain qualifications before trying to enter the workforce.

Finding jobs in roading, at meat-processing factories or on farms were harder, as prospective employees needed a good understanding of health and safety, as well as equipment.

"[Those] jobs are becoming quite technical these days, so people have to use training programmes.