**RBNZ Outlook Steady: NZ Jobs Report Recap**

Tecfai Editorial Team

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Post on Nov 06, 2024

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RBNZ Outlook Steady: NZ Jobs Report Recap

The Reserve Bank of New Zealand (RBNZ) is likely to maintain its current stance on interest rates following the latest employment data release. While the New Zealand jobs report showed some signs of cooling, the overall picture suggests the labor market remains resilient, prompting a cautiously optimistic outlook from the central bank.

Key Takeaways from the NZ Jobs Report

The June 2023 employment data revealed a mixed bag for the New Zealand economy. Here's a breakdown of the key findings:

• Unemployment Rate: The unemployment rate remained steady at 3.3%, mirroring the previous quarter's figures. This indicates a tight labor market with sustained demand for workers.
• Employment Growth: Employment growth slowed slightly, rising by 0.2% in the June quarter, down from 0.6% in the previous quarter.
• Participation Rate: The participation rate edged up to 69.8%, suggesting more people are actively seeking employment.
• Wages: Average hourly earnings rose by 3.6% year-on-year, indicating continued wage pressures.

RBNZ's Stance Remains Unchanged

The RBNZ's recent monetary policy statement acknowledged the cooling employment growth and acknowledged the downward pressure on inflation. However, the bank continues to prioritize its inflation-fighting objectives, suggesting that any rate cuts are unlikely in the near future.

The steady unemployment rate, coupled with persistent wage pressures, reinforces the RBNZ's concerns about inflation. The central bank is likely to maintain a watchful eye on the evolving economic landscape, carefully considering any potential inflationary risks.

What to Expect Moving Forward

The NZ jobs report provides valuable insights into the health of the New Zealand economy. The central bank will likely continue to monitor key economic indicators, including inflation data and wage growth, to gauge the appropriate course of action regarding interest rates.

While the labor market is showing signs of easing, it's still too early to determine whether this signifies a substantial shift in the economic trajectory. The coming months will be crucial for observing how these trends play out and what implications they hold for the RBNZ's monetary policy decisions.