New Zealand dollar down after unemployment rate ticks higher

May 4, 2016

Article by ForexTime

The New Zealand unemployment report was published on Wednesday, showing a slight uptick to the official jobless rate in March.

The New Zealand dollar fell soon after the data from a session high of $0.6926 to $0.6875.

Data from Statistics New Zealand showed a higher jobless rate in the March 2016 quarter at 5.7 percent (from a revised 5.4 percent). The figure was however higher than expectations of 5.5 per cent.

The March quarter showed a more lackluster labour market compared to the December quarter (which showed the lowest level of unemployment in almost seven years).

Some economists also believe the labour supply will outstrip labour demand, which would impact the unemployment rate. Salary and wage rate growth (including overtime) in the Canterbury construction industry continued to ease, to 1.3 percent, in the year to the March 2016 quarter.


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But one bright side is that the number of employed people rose 1.2 per cent quarter-on-quarter from a revised 1 per cent (previously 0.9 per cent) at the end of last year, while the year-on-year rate jumped by 2 per cent from revised growth of 1.4 per cent (previously 1.3 per cent) in the December quarter.

 


Article by ForexTime

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