Unemployment rises to 5.2 percent
\n Two thousand jobs lost in Q2, unemployed grew 16,000 over the past year
\n Marked rise of young people staying or going back to education
\n Annual wage growth slows to 2.4 percent from 2,9 percent
\n Data slightly better than expected — RBNZ still likely to cut cash rate in two weeks.<\/p>\n
Finance minister Nicola Willis is due to speak about 11.30am.<\/p>\n
Unemployment edged up to a near five year high as businesses halted hiring, but slack in the jobs market increased, and wage growth slowed further.<\/p>\n
Stats NZ numbers showed the unemployment rate rising to 5.2 percent in the three months ended June, from 5.1 percent in the previous quarter. The data was a shade below expectations.<\/p>\n
Unemployment has been steadily rising as business either sacked staff or stopped hiring because of the weak economy, while the workforce has increased despite a slowdown in migration.<\/p>\n
“Labour market conditions have changed considerably in the last few years. Since the June 2022 quarter, the unemployment rate has risen 1.9 percentage points ,” Stats NZ labour market spokesperson Jason Attewell said.<\/p>\n
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\nNicola Willis.
\nPhoto: RNZ \/ Samuel Rillstone\n<\/p>\n
The lowest unemployment rate in recent years was 3.2 percent in late 2021 during the pandemic.<\/p>\n
The level of underutilisation, including the unemployed and underemployed and a measure of slack in the jobs market, rose to 12.8 percent from 12.3 percent. It was the highest rate since late 2020.<\/p>\n
The economy shed about 2000 jobs during the quarter, and 16,000 jobs over the past 12 months.<\/p>\n
Full time employment increased slightly, but those in part time work decreased.<\/p>\n
Stats NZ said there was an increase in the number of young people in education, with a fall in youth employment and in the workforce.<\/p>\n
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\nPhoto: RNZ\n<\/p>\n
“Current labour market conditions could be influencing young people to enter or remain in education,” Attewell said.<\/p>\n
The number of young people between 15 and 24 years not in education or training held steady at 12.9 percent.<\/p>\n
The broad measure of wages showed overall growth slowing to 2.4 percent from 2.9 percent.<\/p>\n
The data was close to Reserve Bank forecasts and is likely to support another 25 basis point cut in the official cash rate to 3.00 percent later this month.<\/p>\n