New Zealand Jobless Rate Hits Nine-Year High In Weak Economy
Michael RossNew Zealand's jobless rate rose to the highest in nine years in the third quarter as the weak economy made firms reluctant to take on new workers.
New Zealand's jobless rate rose to the highest in nine years in the third quarter as the weak economy made firms reluctant to take on new workers.
Unemployment climbed to 5.3% from 5.2% in the second quarter, Statistics New Zealand said Wednesday in Wellington. That matched economists' median estimate and was the highest since the fourth quarter of 2016. Employment was unchanged from the previous three months, weaker than the estimated 0.1% increase.
New Zealand's economy failed to grow in the first half of the year and a second-half recovery may be muted in the face of slowing immigration and a sluggish housing market. The Reserve Bank has responded by reducing interest rates further than it initially intended, and it has signaled another cut is likely later this month.
The New Zealand dollar fell after the report, buying 56.43 US cents at 10:58 a.m. in Wellington from 56.52 cents beforehand.
Today's data were in line with the RBNZ's August projections.
The central bank has cut the Official Cash Rate by 300 basis points since August last year to 2.5%, and most economists expect another 25-point reduction at the final meeting of the year on Nov. 26.
The labor force participation rate, which measures how many of the working-age population are actively seeking employment, declined to 70.3%, the lowest since late 2020, as the prospects of work diminished.
Employment fell 0.6% from the year-earlier quarter. Economists estimated a 0.2% decline.
Today's report showed annual wage inflation slowing for a 10th straight quarter.
Ordinary time wages for non-government workers gained 2.1% from a year earlier, down from 2.2% in the previous quarter.
