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New Zealand Jobless Rate Hits 5.3%, Highest Since 2016

The figures match central bank forecasts, bolstering expectations of a late‑November rate cut.

Overview

  • The number of unemployed reached 160,000, the largest since early 1994, with employment flat on the quarter and a net loss of about 18,000 jobs over the past year.
  • Labour underutilisation rose to 12.9%, the highest since late 2020, including 22,700 people unemployed for more than a year.
  • Youth unemployment climbed to 15.2%, and the share of 15–24 year olds not in education or training increased to 13.8%.
  • Annual private‑sector wage growth slowed to 2.1%, a five‑year low that trails roughly 3% consumer price inflation.
  • The data landed near Reserve Bank projections and strengthened market expectations for a further 25 basis point OCR cut later this month, as the New Zealand dollar hit a seven‑month low and local shares edged lower.