New Zealand Jobless Rate Hits 5.7% 11-Year High as Q3 Employment Falls 0.1%
Updated
Updated · Reuters · Nov 3
New Zealand Jobless Rate Hits 5.7% 11-Year High as Q3 Employment Falls 0.1%
3 articles · Updated · Reuters · Nov 3
Summary
New Zealand’s unemployment rate rose to 5.7% in the September quarter, the highest since 2015 and above both market and central-bank forecasts of 5.5%.
Employment fell 0.1% instead of the 0.4% gain economists expected, participation slipped to 70.4%, and private-sector wage growth slowed to 0.4% from 0.7%.
Markets read the data as easing inflation pressure: the New Zealand dollar briefly weakened and two-year swap rates dropped 6 basis points to 3.7815%.
The figures sharpen pressure on Prime Minister Christopher Luxon before the Nov. 7 election, with inflation and living costs dominating voter concerns in a tight race.
For the Reserve Bank, which held the cash rate at 2.75% last week, the weaker labour market strengthens the case for staying on hold rather than resuming rate hikes.
With New Zealand's long-term unemployment hitting a 30-year high, how will a generation of scarred youth reshape the future workforce?
As business closures soar and youth joblessness spikes, what hidden opportunities lie in New Zealand's thriving regional farming and mining sectors?
If prolonged joblessness permanently erodes skills, what unconventional strategies can jobseekers use to bypass traditional hiring barriers in a stagnant economy?