Michael Gordon, senior economist at Westpac, notes that New Zealand’s unemployment rate rose to 4.2% in the September quarter, reversing its surprising drop last quarter.
Key Quotes
“The unemployment rate has flattened out as economic growth has slowed, but is still at levels consistent with a tight labour market.”
“Annual wage growth rose to a new tenyear high, partly boosted by public sector pay agreements.”
“The labour market is in a stronger condition than the Reserve Bank expected in its previous forecasts. Our forecast remains for no change to the OCR at next week’s review.”
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