NZ: Expect a small decline in the Q4 unemployment rate to 4.5% - Westpac

Analysts at Westpac expect a small decline in the New Zealand’s unemployment rate from 4.6% to 4.5%, which would be a new nine–year low.

Key Quotes

“Job advertisements, benefit numbers and business opinion surveys all point to steady rather than rapid improvement in the jobs market over the quarter.”

“Both employment and labour force participation have been very volatile recently. We expect some payback from their sharp gains in the September quarter, without affecting the broader picture of a stronger jobs market.”

“The employment figures will undoubtedly come under more scrutiny this year, with diminishing slack in the labour market and a new Government focused on tipping the balance of power more towards workers.”