NZ: Unemployment at a nine-year low - Westpac

The New Zealand’s unemployment rate fell to a nine-year low of 4.6% in the September quarter, slightly better than Westpac and the market expected, notes Michael Gordon, Senior Economist at Westpac.

Key Quotes

“Today’s labour market report for the September quarter painted a stronger picture of employment than expected, even after allowing for some unusual quarterly moves in the details. However, wage growth has yet to show any signs of a pickup, even with consumer price inflation no longer at rock-bottom levels.”

“The unemployment rate fell from 4.8% to 4.6% in the September quarter, beating market forecasts of a fall to 4.7%. This is the lowest rate since December 2008, when the Global Financial Crisis was reaching full force.”

“Employment growth and labour force participation were very strong, but these are noisy on a quarterly basis and may have been affected by recent survey changes.”

“Labour cost inflation remains very subdued, outside of the care workers’ equal pay settlement.”

“The jobs market has strengthened over recent years, but it’s not clear that it has moved into tight territory yet.”