Bank views on today's NZ labour.........>

NEW ZEALAND: Bank views on today's NZ labour market report (2/2):

- TD: While business confidence may be struggling, the demand for skilled and

unskilled labour continues to outstrip supply, and hence we expect another

decent lift in employment, lowering the unemployment rate to 4.3% (mkt 4.4%). We

look for wages growth to be solid at +0.5%/q, or 2.0%/y, but don't expect the

minimum-wage-led jump until Q2 (we pencil in +0.8%/q and 2.4%/y).

- Westpac: There are signs that the improving trend in the labour market has

become bogged down more recently, as slower economic growth and uncertainty

around government policy have weighed on firms' hiring decisions. We expect a

soft 0.3% rise in employment over the March quarter, and an unchanged

unemployment rate of 4.5%. Our estimates suggest that the labour market is

currently in 'neutral' rather than 'tight' territory, in terms of its influence

on inflation pressures. Consequently, we expect wage growth to be in line with

previous quarters.