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NZ unemployment rate rises to 5.6% in June quarter
The unemployment rate was the highest since September 2015, while wage growth was steady with annual private sector wage and salary growth at 2.0%.
New Zealand’s unemployment rate increased to 5.6% in the June quarter, beating market and Reserve Bank of New Zealand expectations, and reaching the highest level since September 2015, according to Action Forex. The report said the rise was driven by soft overall labour market conditions, with the lift in employment growth outweighed by an increase in labour force participation. It also flagged potential sampling noise, noting that the Household Labour Force Survey showed a 0.5% increase in employment alongside a larger participation rate jump from 70.4% to 70.7%.
Beyond the HLFS, Action Forex cited other employment measures that pointed to weaker demand: the Monthly Employment Indicator suggested filled jobs rose about 0.1% over the quarter, while the Quarterly Employment Survey showed a 0.4% fall in filled jobs and a 0.3% decline in hours paid.
On wages, the Labour Cost Index showed a 0.7% rise in private sector wages and salaries for the quarter, leaving annual growth unchanged at 2.0%. The same release showed public sector wages rising 0.5% for the quarter and 1.7% for the year, and the distribution of pay increases remaining in the 2% to 3% range.