Recent data from Stats NZ shows that the unemployment rate remained steady at 5.1% in the March quarter, unchanged from the December quarter.
However, it is still the highest unemployment rate since 2020.
“While unemployment was unchanged over the quarter, longer-term trends mean the labour market appears quite different from the same quarter last year,” Stats NZ labour market spokesperson Abby Johnston said.
Over the past year, unemployment increased by 22,000 to reach 156,000, according to Stats NZ’s Household Labour Force Survey.
The data also showed that more Kiwis are working part-time this year compared to last year.
The number of part-time employees increased by 25,000, whereas the number of full-time employees decreased by 45,000.
“Approximately 21% of employed people work part-time – 12% of men and 30% of women.”
Furthermore, the actual unemployment rate came in slightly below expectations. In February, the Reserve Bank projected that the unemployment rate would rise to 5.2% in the March quarter, where it would peak before gradually declining towards the end of the year.
Similarly, bank economists had forecasted the rate to be between 5.2% and 5.3% ahead of today’s data release, anticipating a slight increase in unemployment during the March quarter.
“While the New Zealand economy has started to regain some momentum since late last year, the labour market remains in a soft patch,” Westpac senior economist Michael Gordon stated.
“The monthly jobs data has stabilised and even ticked up a little in recent months, but not by enough to match the growth in the population, which is likely to mean a further rise in the unemployment rate.”
“At the same time, the ongoing degree of spare capacity in the labour market will continue to put downward pressure on wage growth,” Gordon added.