NZ Unemployment Reaches Decade-High as Rate Hike Remains on Horizon

New Zealand's jobless rate hit a decade-high in Q2 at 5.6%, according to data from Statistics New Zealand released on Wednesday.

The unemployment rate rose from an upwardly revised 5.4% in the previous quarter, surpassing market forecasts of 5.4%.

Finance Minister Nicola Willis attributed the increase to 'difficult months for many employers' and acknowledged the challenges faced by those searching for work.

Prime Minister Christopher Luxon's National Party has seen its popularity decline amid a weakening economy and rising unemployment, with most voter surveys showing it trailing the centre-left Labour Party.