NZ Unemployment Hits Decade-High as Rate Hike Expectations Mount

New Zealand's jobless rate hit a decade-high in June as the number of people looking for work surged, eclipsing employment gains. The unemployment rate rose to 5.6% from an upwardly revised 5.4%, according to Statistics New Zealand.

Data released on Wednesday topped market forecasts and was the highest since late 2015. Finance Minister Nicola Willis acknowledged the difficult job market, saying April, May, and June were 'difficult months for many employers'.

The Reserve Bank of New Zealand (RBNZ) has hinted at further rate hikes to curb inflation, but economists argue that the scale of spare capacity in the labour force means wages are not a homegrown threat. The RBNZ lifted its official cash rate by 25 basis points to 2.5% in July.