New Zealand Unemployment Hits Highest Level Since 2015
New Zealand unemployment rose to 5.7 percent in the third quarter, exceeding forecasts and signaling a cooling labor market.
The unemployment rate in New Zealand rose to 5.7 percent in the third quarter, the highest level recorded since 2015. Data released by Statistics New Zealand shows that employment fell 0.1 percent from the previous quarter, missing economist and central bank projections of a 0.4 percent increase and a 5.7 percent unemployment rate.
The labor market showed further signs of cooling as the participation rate fell to 70.4 percent, slightly below the predicted 70.7 percent. Wage growth also slowed, with the private sector labor cost index, excluding overtime, increasing by 0.4 percent for the quarter and 2.0 percent annually.
These figures are critical for the Reserve Bank of New Zealand as it monitors wage inflation to determine if price increases are becoming entrenched. While the central bank recently held the cash rate steady at 2.75 percent to evaluate the impact of previous hikes, it has signaled that further rate increases remain likely.
