NZ Unemployment Rate Hits Decade-High Amid Economic Weakening
New Zealand's jobless rate rose to 5.6% in the June quarter, its highest level since late 2015.
The unemployment figure was above market forecasts of 5.4%, and a sign of slack that could limit how high interest rates might rise this year.
Finance Minister Nicola Willis acknowledged that the past three months were 'difficult' for employers, while Prime Minister Christopher Luxon faced criticism over his economic credentials after his party's popularity fell amid a weakening economy and higher unemployment.
The Reserve Bank of New Zealand (RBNZ) has signaled more rate hikes will be needed to remove stimulus from the economy and restrain inflation. However, the scale of spare capacity in the labour force means wages are not a homegrown threat to inflation, arguing against an aggressive rate cycle.