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New Zealand Unemployment Climbs to 5.4%, Highest Since 2015

Softer labour readings reinforce expectations the RBNZ will hold the cash rate at 2.25%.

Overview

  • Employment rose by about 15,000 in the December quarter and the participation rate reached 70.5%, but a larger labour force lifted the jobless rate.
  • Underutilisation stayed at 13%, the highest since late 2020, pointing to persistent slack in the market.
  • A total of 165,000 people were unemployed, up 4,000 from the prior quarter and 10,000 from a year earlier.
  • Annual wage growth slowed to roughly 2% as consumer prices increased about 3.1%, further squeezing real incomes.
  • Economists said the worse‑than‑forecast figures align with holding the Official Cash Rate at 2.25% later this month.