Overview
- Stats NZ reported unemployment at 5.3% in the September quarter, the highest since 2016, with overall employment essentially unchanged and participation at 70.3%.
- The number of people unemployed rose to 160,000, the most since early 1994, and underutilisation increased to 12.9%, signaling more spare capacity.
- Annual wage growth slowed to 2.1% on the broad measure, below roughly 3% consumer price inflation, indicating continued pressure on real incomes.
- Economists say the data strengthens the case for another 25 basis point cut later in November after about 300 basis points of easing since August 2024.
- Labour market pain is uneven, with youth unemployment at 15.2% and joblessness above 6% in Northland, Auckland and Waikato, while the New Zealand dollar briefly hit a seven-month low after the release.