NZ Q2 Unemployment rate 4.0% (vs. expected 4.5%) & Employment change +1.0% q/q (vs. expected +0.7%)
New Zealand jobs report for April to June (second quarter 2021)
NZD/USD marked higher on the data ... background here on this:
- Unemployment rate 4.0% vs. expected 4.5%, prior 4.7%
- Employment change +1.0% vs. expected +0.7% q/q, prior +0.6%
- Employment change 1.7% y/y vs. expected 1.2%, prior 0.3%
- Participation rate 70.5% vs. expected 70.6%, prior 70.4%
- Labour Cost Index +0.9% q/q vs. expected +0.4% q/q, prior +0.4% q/q
- private sector wages excl overtime +2.2% y/y
- private sector wages incl overtime +0.9% y/y
- underutilization rate 10.5% (prior was 12.1%) .... The fall in the underutilisation rate ... is the largest since the March 2013 quarter and second largest fall on record.
This strong report will further solidify expectations of a Reserve Bank of New Zealand rate hike on August 18. The first of a series of hikes perhaps, some of the banks IN NZ are tipping a hike at each remaining meeting this year.