NZ: Labour market is back on track – Westpac

The research team at Westpac notes that the New Zealand’s unemployment rate fell to 4.9% in the March quarter which was stronger than analysts (including Westpac) had expected, and completely reversed the rise seen in December, led by stronger than expected employment growth.

Key Quotes

“The unemployment rate fell to 4.9% in the March quarter, a lower level than analysts had expected.”

“The larger than expected drop in unemployment reflected stronger than expected jobs growth, with the number of people in employment rising by 29,000 over the quarter.”

“Jobs growth in March offset the continued increase in the size of the labour force and associated climb in the participation rate (which hit a fresh record level).”

“Wage inflation remains muted, as expected.”

“Today’s data have limited implications for the RBNZ.”