New Zealand: Unemployment rate rises in Q2
The seasonally-adjusted unemployment rate rose to 4.6% in Q2 2024 from 4.4% in Q1 2024. Over the same time period, the underutilization rate moved further into double digits, while private-sector wage growth slipped from 3.8% to 3.6%.
The data is consistent with muted readings for other economic indicators, and points to a soft private consumption outturn in Q2; our panelists see a mere 1.0% expansion in private spending in annual terms in the quarter.
On the data, ANZ analysts said:
“In big-picture terms, the Q2 labour market data show spare economic capacity continues to build, and that wage (and therefore CPI inflation) pressures are fading. However, relative to our and the RBNZ’s expectation, the vibe of today’s data is a little stronger than expected.”