New Zealand Jobless Rate Hits Decade-High Amid Economic Woes

New Zealand's unemployment rate rose to 5.6% in the June quarter, marking its highest level since late 2015.

The increase was driven by a sharp rise in the number of people looking for work, despite employment growth beating forecasts at 0.5%

Finance Minister Nicola Willis acknowledged that it's been 'hard going' for those seeking work, while Prime Minister Christopher Luxon faces pressure ahead of the November general election.

The Reserve Bank of New Zealand has indicated more rate hikes will be needed to remove stimulus from the economy and restrain inflation, but experts argue this won't lead to aggressive rate increases due to spare capacity in the labour force.