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New Zealand Jobless Rate Rises to 5.3% as Pay Growth Hits Five-Year Low

The figures align with Reserve Bank forecasts, reinforcing expectations of a 25 basis-point cut to a 2.25% cash rate later this month.

Overview

  • Stats NZ reported 160,000 people unemployed, the highest headcount since early 1994.
  • Broader underutilisation rose to 12.9%, the highest since late 2020, as the economy shed 18,000 jobs over the past year.
  • Annual wage growth slowed to 2.1% against 3% inflation, a five-year low indicating falling real pay.
  • Slack is uneven, with youth unemployment at 15.2% and jobless rates above 6% in Northland, Auckland and Waikato while all South Island regions remain below 5%.
  • Finance Minister Nicola Willis said unemployment tends to lag recoveries and pointed to tax relief and infrastructure spending to support growth.