Jobs Growth Continues in NZ, But Earnings Lag Behind Inflation
The New Zealand economy saw some mixed signals on Monday, with jobs growth in more regions and industries but slower earnings growth. August brought a 20,800 increase in jobs compared to a year ago, marking the highest growth since April 2024.
However, younger workers under 35 experienced a decline of -1.7% in job growth, while those aged 65 and older saw an increase of +3.8%, the fastest among any age cohort.
New lending for housing has been on a downward slide, with new bank lending not including inter-bank borrowing decreasing in market share. The Reserve Bank of New Zealand (RBNZ) noted it had $26.1 billion in foreign currency intervention capacity as of August 2026, its lowest level since January 2025.
The NZX50 index rose +0.5% by midday and the overall index is up +8.8% from six months ago. However, Shanghai's equity markets saw a decline due to disappointing industrial profit growth in China, which was up +4.2% in August but slower than expected.
The US dollar strengthened against major currencies, while oil prices rose by $1.50 per barrel. The New Zealand dollar remained stable at 56.7 US cents, with the TWI-5 index also holding steady around 60.3.