NZ: Labour market in a stronger condition – Westpac

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.”