New Zealand: Jobless rate ticks higher in Q2 – UOB

Pablo Piovano FXStreet

Economist at UOB Group Lee Sue Ann comments on the recently released labour market figures in New Zealand.

Key Takeaways

“New Zealand’s jobless rate rose a tad to 3.3% in 2Q22 from a record-low of 3.2% in 1Q22, and higher than expectations of 3.1%. Employment growth also stalled, with the number of jobs unchanged for the quarter.”

“Meanwhile, wages came in stronger than expected, with private-sector wages rising 1.3% from the prior quarter. From a year earlier, wages climbed 3.4%, the most since 2008. Notably, private sector wage growth has now almost caught up to CPI inflation.”

“The continued surge in wage inflation will remain a major concern, and that should keep the RBNZ on track to hike the OCR to 4.00% by the end of this year, as per our forecasts. Thereafter, we see the RBNZ on hold.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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