NEW ZEALAND
Source: MNI - Market News/Refinitiv
- The labour data were weaker than the RBNZ had forecast in February but labour costs were above their expectations. Q1 unemployment rate was 0.1pp higher, annual employment growth 0.3pp lower but annual labour cost growth 0.3pp higher. Revised forecasts will be provided at the May meeting.
- The underutilisation rate rose 0.5pp to 11.2% in Q1, which was driven by the 15-24 yrs age group accounting for half the deterioration. Aggregate hours worked rose 0.4% q/q though to be up 2.2% y/y.
- Weakness was seen in both full-time and part-time employment with them falling 0.3% and 0.5% q/q respectively.
- The labour cost index rose 0.9% to be up 4.1% y/y, the lowest quarterly rate since Q1 2022. It remains elevated though and only 0.2pp lower than its 4.3% peak. Average hourly earnings rose 5.2% y/y but this is down from the 7.6% peak. The strength is being driven by the healthcare & social assistance, education and public administration sectors. Private ordinary time earnings rose 0.8% q/q down from 1.0% q/q in Q4.
NZ wages y/y%
Source: MNI - Market News/Refinitiv
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