New Zealand’s Q2 Unemployment Rate Rises Above Forecast, Employment Growth Stronger
| Pair | Now | Since publish |
|---|---|---|
| NZDUSD | — | — |
| AUDNZD | — | — |
- NZ unemployment hits 5.6%, an 11-year high, beats forecast.
- Employment growth strong at 0.5%, underutilisation up to 13.8%.
- NZD/USD dips to 0.5875 after mixed jobs data.
- NZ Q2 jobless rate revised to 5.4%, now 5.6%.
New Zealand’s labor market presented a mixed picture on Wednesday with the release of Q2 unemployment data. The jobless rate rose to 5.6%, surpassing the anticipated 5.4% and marking an 11-year high from the prior 5.3%. However, the employment change for the quarter showed a robust increase of 0.5%, significantly above the 0.2% forecast. The participation rate also saw an uptick to 70.7%, alongside stronger-than-expected wage growth. This combination suggests an economy where more individuals are seeking work, yet hiring activity remains relatively firm, complicating the overall outlook. Following the data release, the New Zealand Dollar (NZD) experienced initial selling pressure.
New Zealand’s unemployment rate climbed to a decade-high of 5.6% in the second quarter, reaching an 11-year high. This figure surpassed the market consensus of 5.4% and was up from 5.3% in the first quarter. The rise is attributed to a global energy shock impacting company profits and more individuals seeking work. Despite the higher jobless rate, overall employment growth remained strong, increasing by 0.5% on quarter, exceeding forecasts for a 0.1% gain and up from 0.2% in the prior three months. Following the report, the New Zealand Dollar (NZD) softened against the US Dollar (USD), with the NZD/USD pair trading near 0.5875.
New details indicate New Zealand’s unemployment rate for the June quarter rose to 5.6%, with the prior March quarter’s figure now revised to 5.4%. The jobless rate has reached its highest level since late 2015. Additionally, the underutilisation rate increased to 13.8% from 12.9%.