Photo: RNZ
- Unemployment is up to 5.3 percent
- 18,000 jobs have been lost over the past year
- Youth unemployment is up, with more quitting the job search and going back to study
- Annual wage growth has slowed to 2.1 percent from 2.4 percent
- The data is roughly in line with forecasts, and the RBNZ is likely to cut the OCR in three weeks
Unemployment edged up to a near nine-year high as businesses halted hiring, but slack in the jobs market increased, and wage growth slowed further.
Stats NZ numbers showed the unemployment rate rising to 5.3 percent in the three months ended September, from 5.2 percent in the previous quarter. The data was largely in line with expectations.
Unemployment has been steadily rising as business either sacked staff or stopped hiring because of the weak economy, while the workforce has increased despite a slowdown in migration.
The actual number of unemployed was 160,000, the highest since early 1994.
The number of unemployed for more than a year was 22,700 or 14.5 percent.
The level of underutilisation, including the unemployed and under-employed and a measure of slack in the jobs market, rose to 12.9 percent from 12.8 percent, the highest rate since late 2020.
The number employed was unchanged from the previous quarter, but the economy lost 18,000 jobs over the past 12 months.
The level of unemployment of young people between 15 and 24 years was 15.2 percent, with the total not in education or training rising to 13.8 percent.
The regions with the highest unemployment were Northland, Auckland and Waikato with rates of more than 6 percent, with all South Island regions below 5 percent.
The broad measure of wages showed overall growth slowing to a five year low of 2.1 from 2.4 percent, compared with a 3 percent rise in consumer prices.
The data was close to Reserve Bank forecasts and is likely to support another 25 basis point cut in the official cash rate to 2.25 percent later this month.
Analysts were expecting that the unemployment figures would nudge up to 5.3 percent, compared with 5.2 percent in the previous June quarter.
Last year's recession and the weak economy have resulted in businesses not hiring and, in some cases, laying off staff.
Finance Minister Nicola Willis told Morning Report today unemployment was always the last thing to correct in a recovering economy.
She said the government was growing the economy and business confidence with things like tax relief, and big infrastructure spending.
Though Auckland's unemployment rate had risen to 6.1 percent, Auckland Business Chamber chief executive Simon Bridges said there was reason to be optimistic.
"We know we have a City Rail Link coming, an International Convention Centre coming where the keys were handed over just this week, these are things capable of lifting sentiment in our biggest city," he said.
"We're not out of the woods, this number is an indicator that shows that. But there are signs that things are potentially getting better... I do think better days are ahead, albeit incrementally."
He said there was reason to believe that the situation was already improving.
"Labour tends to be a lagging indicator of where the economic cycle is at. Anecdotally, even now, not so long after these numbers were drawn from, there's a sense that things even on the employment front are a little better."
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