Kiwi Unemployment Rates Soar as Migration to Australia Continues

New Zealand's labour market is experiencing a setback after recent data revealed a rise in unemployment rates and underutilization. According to Stats NZ, the nation's unemployment rate rose by 0.2% to 5.6%, its highest reading since December 2012.

This news contradicts previous predictions made that suggested New Zealand's improving labour market would lead to fewer Kiwis migrating to Australia in search of jobs. However, with a historically large gap between the two nations' unemployment rates - 1.2% as of June this year - it seems likely that many young Kiwis will continue to make their way to Australia in search of better employment opportunities.

The Stats NZ data also showed a significant increase in long-term unemployment, with around 8,000 more people experiencing long-term joblessness in the June quarter compared to the same period last year. Additionally, wage growth was found to be weak and below the CPI inflation rate, resulting in a decline of 2.1% in real wages.