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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.”