New Zealand’s Q2 unemployment rose to 5.6%, the highest since 2013, while wage growth slightly exceeded forecasts.
New Zealand’s unemployment rate climbed to 5.6% in Q2, marking an 11-year high, driven partly by increased labor force participation. Despite the rise, employment grew 0.5% quarter-on-quarter, signaling resilience in the job market.
Private-sector wages slightly outperformed consensus and the Reserve Bank of New Zealand’s May projections. Analysts anticipate the central bank will proceed with another rate hike to curb inflationary pressures amid persistent wage growth.
The data reinforces expectations for tighter monetary policy, though the mixed labor market signals may temper aggressive moves.