New Zealand Jobless Rate Hits 11-Year High Amid Global Energy Shock

New Zealand's jobless rate has reached an 11-year high at 5.6 per cent, according to Statistics New Zealand. The unemployment rate increased from a revised 5.4 per cent in the second quarter, exceeding economists' median estimate of 5.4 per cent.

The highest level since the third quarter of 2015 comes as the global energy shock squeezes company profits and more people seek work. Employment rose 0.5 per cent from the prior three months, outpacing the 0.1 per cent estimate.

New Zealand's economic recovery remains fragile in the face of geopolitical ructions, including the US-Iran war, which has driven up costs and eroded business confidence. The Reserve Bank began raising interest rates to counter inflationary pressures last month, suggesting firms will remain cautious about future hiring in the near term.