NZ Unemployment Hits 11-Year High Amid Global Energy Shock

New Zealand's jobless rate surged to an 11-year high in the second quarter due to the global energy shock, which squeezed company profits and led more people to seek work.

The unemployment rate rose to 5.6% from 5.4%, exceeding the median estimate of 5.4%. This is the highest level since the third quarter of 2015. Employment growth, however, was stronger than expected at 0.5%, while the participation rate unexpectedly climbed to 70.7%

The Reserve Bank Governor Anna Breman said she remains focused on returning inflation to its target range and dismissed claims that high inflation has become the new normal.

Wage growth accelerated for the first time in three years, with ordinary time wages increasing by 2.1% from a year earlier.