Unemployment expected to push up to near 11-year high, economists warn
Economists warn that New Zealand's unemployment rate is expected to rise to an 11-year high of 5.4 or 5.5 percent. Weak economic activity and a lack of job growth are cited as the primary drivers behind the stagnant labor market.
Why it matters
Rising unemployment signals a potential economic downturn, impacting consumer spending and national fiscal policy.
Unemployment is set to push up to a near 11-year high with too many people and a weak supply of jobs.
Major bank economists expect the unemployment rate to inch up to 5.4 or 5.5 percent for the three months ended June, from the 5.3 percent rate in March.
Westpac senior economist Michael Gordon said employment growth is subdued.
"The jobs market has held its ground through the Middle East conflict, but it hasn't gathered the momentum that we would have otherwise hoped to see.
"Employment has been gradually picking up again in recent months, but not quickly enough to keep up with population growth."
Expectations are that a few thousand jobs may have been created during the quarter.
ANZ senior economist Miles Workman said businesses had not been firing staff to any extent, but weak economic activity meant there was little hiring either.
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