NZ Job Market Faces Prolonged Downturn

The job market in New Zealand may continue to worsen before it improves, according to some experts. While the economy has shown signs of recovery from the COVID-19 pandemic, unemployment rates remain high and wage growth is sluggish.

According to a recent report, the number of people out of work in New Zealand stands at 4.5%, which is higher than the pre-pandemic rate. Meanwhile, wages are growing at an annual rate of just 1.6%.

Some economists warn that these trends could continue for some time, potentially leading to a longer period of high unemployment and slow wage growth. However, others argue that the job market will eventually recover as the economy continues to grow.

The Reserve Bank of New Zealand has also expressed concerns about the labor market, citing rising unemployment rates and underemployment among younger workers.