NZ Q2 Unemployment Rate 3.3%, higher than the expected 3.1%

The New Zealand Unemployment Rate released by the Statistics New Zealand has been released as follows:

• New Zealand Q2 s/adj Unemployment rate 3.3% (Reuters poll 3.1%).
• NZQ2 s/adj Employment growth 0.0% (Reuters poll +0.4%).
• NZ Q2 Participation Rate 70.8% (Reuters poll 71.0%).
• NZ Q2 lci private sector wages (ex-o'time) +1.3% on pvs qtr (Reuters poll +1.1%).

''Finding workers remains the #1 constraint facing Kiwi businesses and this situation is expected to worsen as Kiwis are attracted across the Tasman'', analysts at ANZ Bank said.

''Australia’s labour market is experiencing similar challenges to the New Zealand market but the higher wages on offer in certain sectors are expected to attract New Zealanders into some of these positions.''

Meanwhile, NZD/USD has been under pressure. The greenback has picked up a safe haven bid relating to tensions surrounding Taiwan between the US and China. The miss in the Unemployment Rate is weighing on the bird, down 0.23% on the day so far. 

About NZ Employment

Statistics New Zealand releases employment data on a quarterly basis. The statistics shed a light on New Zealand’s labor market, including unemployment and employment rates, demand for labor and changes in wages and salaries. These employment indicators tend to have an impact on the country’s inflation and Reserve Bank of New Zealand’s (RBNZ) interest rate decision, eventually affecting the NZD. A better-than-expected print could turn out to be NZD bullish.