Unemployment has edged up to a near nine-year high as businesses halt hiring, but slack in the jobs market increased and wage growth slowed further.
Stats NZ numbers today show the unemployment rate rising to 5.3% in the three months ended September, from 5.2% in the previous quarter. The data was largely in line with expectations.
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.
The actual number of unemployed was 160,000 – the highest since early 1994.
The number of unemployed for more than a year was 22,700 or 14.5%.
The level of under-utilisation, including the unemployed and under-employed and a measure of slack in the jobs market, rose to 12.9% from 12.8% – the highest rate since late 2020.
The number employed was unchanged from the previous quarter, but the economy lost 18,000 jobs over the past 12 months.
The level of unemployment of young people between 15 and 24 years was 15.2%, with the total not in education or training rising to 13.8%.
The regions with the highest unemployment were Northland, Auckland and Waikato with rates of more than 6%. All South Island regions were below 5%.
The broad measure of wages showed overall growth slowing to a five-year low of 2.1% from 2.4%, compared with a 3% rise in consumer prices.
The data was close to Reserve Bank forecasts and is likely to support another 25 basis point cut in the official cash rate to 2.25% later this month.
Analysts were expecting that the unemployment figures would nudge up to 5.3%, compared with 5.2% in the previous June quarter.
Last year’s recession and the weak economy have resulted in businesses not hiring and, in some cases, laying off staff.
Finance Minister Nicola Willis told RNZ’s Morning Report programme today that unemployment was always the last thing to correct in a recovering economy.
The government was growing the economy and business confidence with things like tax relief, and big infrastructure spending, she said.
