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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NEW ZEALAND
Employment data for Q4 came in stronger than expected with the unemployment rate only rising 0.1pp to 4.0% and new jobs up 0.4% q/q to be up 2.4% y/y, which was still a slowdown from Q3’s upwardly revised 2.7% y/y. While the labour market is gradually easing, it remains tight and wage pressures persist and so the RBNZ is on hold for the foreseeable future while it monitors developments.
- Working age population grew 3% y/y compared with 2.4% for employment and so the unemployment rate was 0.6pp higher than a year ago and 0.8pp from the trough but remains well below the historical average.
NZ unemployment rate %
Source: MNI - Market News/Refinitiv
- Full-time employment growth remains robust rising 0.7% q/q and 2.2% y/y in Q4 with part-time easing 0.3% q/q to be up 3.4% y/y. Both are off their peaks but remain solid.
NZ employment y/y%
Source: MNI - Market News/Refinitiv
- The underutilisation rate continued trending higher at 10.7% up 0.3pp q/q and +1.4pp y/y. This increase has been driven by rising underemployment. Statistics NZ reported that there were 8k more people underemployed in Q4 while the number of unemployed rose by less (+3k).
- Labour costs remained elevated rising 1% q/q and 4.3% y/y, where it has now been for four quarters. Private sector wages have eased to 6.6% y/y, stronger than expected, after peaking at 8.6%, whereas the public sector saw an increase of 7.4%, the highest in almost 18 years. The continued strength in wages will worry the RBNZ and means easing is unlikely until later in the year at the earliest.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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