NZ Jobless Rate Rise and Low Wage Growth Fuel Rate Cut Expectations

Rising Unemployment and Wage Growth Trends in New Zealand

Rising unemployment in New Zealand and annual wage growth at a two-year low have strengthened the expectations that the Reserve Bank of New Zealand (RBNZ) will cut interest rates before the end of the year. According to Statistics New Zealand, the nation's jobless rate rose to 4.6% in the second quarter, up from an upwardly revised 4.4% in the previous three months. Meanwhile, employment increased by 0.4% compared to the prior quarter. This was better than economists' forecasts, which had predicted a 4.7% unemployment rate and a 0.2% contraction in employment.