Paula Bennett

Wellington, Sept 6 NZPA - The number of people on benefits rose slightly in August but more than 6000 beneficiaries also started work, Social Development Minister Paula Bennett says.

The number of people on a benefit rose 0.7 percent to 336,333.

The number on the unemployment benefit increased from 63,059 to 63,910.

The increase was largely due to agriculture layoffs in the East Coast, Bay of Plenty, Taranaki and central North Island, Ms Bennett said.

She said 6596 people cancelled their benefit last month because they found work.

Labour's deputy leader, Annette King, said Ms Bennett's statement was misleading and the minister was trying to put a positive spin on the latest statistics.

"On closer inspection, the reality is the number of people receiving the unemployment benefit actually rose by over 850 people last month," she said.

"Today is another example of Ms Bennett attempting to manipulate information."