MNI BRIEF: NZ Unemployment Rises Above Expectations

New Zealand’s unemployment rate rose 20bp to 3.6% q/q in Q2 – 0.1pp above the Reserve Bank of New Zealand’s forecast, while salary and wage rates climbed 4.3% y/y, according to data released by Stats NZ.

Employment, however, gained 1.25 y/y to 69.8% and 0.3% over the quarter, while the labour force participation rate grew 1.5% over the year, or 0.4 q/q, to 72.4%.

In its May Monetary Policy Statement, the RBNZ forecasted unemployment to rise to 4.6% by the end of the year (see chart).