New Zealand unemployment hits 5.6%, an 11-year high
New Zealand's unemployment rate rose to 5.6% in the June quarter, its highest level in 11 years. The increase exceeded economists' forecasts of around 5.4-5.5%, reflecting a labour market that continues to struggle for momentum. Statistics New Zealand data pointed to weak hiring across multiple sectors.
New Zealand's unemployment rate climbed to 5.6% in the June quarter, according to official data released this week, marking the highest reading in 11 years. The result came in above the 5.4% to 5.5% range that major bank economists had been forecasting, underscoring how sluggish the labour market has become across the country.
The rise adds to a run of soft indicators for the New Zealand economy, with businesses citing weak demand, hiring freezes and cautious investment plans. Analysts said the figures would keep pressure on policymakers to weigh further support for growth, even as inflation and cost-of-living pressures remain separate concerns for households and the central bank.
Economists expect the labour market to stay weak in the coming months before any meaningful recovery in hiring takes hold. The data is likely to feature heavily in upcoming discussions about interest rates, with markets watching closely for signs of how much further unemployment could rise before it eventually stabilises.
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