NZ: Expect a modest rise in employment - Westpac

Michael Gordon, Senior Economist at Westpac, expects a modest rise in New Zealand’s employment and an uptick in the unemployment rate to 4.6% in the September quarter.

Key Quotes

“We also expect a pickup in wage growth, partly helped by pay settlements with the Government.”

“New Zealand’s labour market has become tighter over recent years, but we’re only now seeing evidence of a pickup in wage pressures.”

“And there are signs of a softening in labour demand, as the economy has passed its peak rate of growth.”

“We’re expecting both unemployment and wage growth to exceed the Reserve Bank’s forecasts. But there will be little time to process these results before next Thursday’s Monetary Policy Statement.”