New Zealand jobless rate hits 11-year high in run-up to polls
WELLINGTON: New Zealand’s unemployment rate climbed to an 11-year high in the third quarter, underscoring the economic and inflation pressures dominating the country’s election campaign and sharpening the challenge for Prime Minister Christopher Luxon, who is seeking another term.
New Zealand's unemployment rate reached an 11-year high of 5.7% in the third quarter, as inflation and rising living costs dominate the country's election campaign, according to Statistics New Zealand. The centre-right National Party-led coalition, led by Prime Minister Christopher Luxon, faces pressure to prove that its policies can boost growth and alleviate cost-of-living pressures ahead of the election on November 7.
The jobless rate, which rose from 5.5% in the previous quarter, saw employment fall by 0.1%. Labour Party spokesperson Barbara Edmonds called the numbers a "damning verdict" on Luxon's economic management. Finance Minister Nicola Willis defended the current government's plan, stating it is working to rebuild the economy. Despite signs of economic recovery, unemployment has risen and failed to peak as forecast.
The New Zealand dollar dipped before trading largely unchanged, while two-year swap rates fell. The participation rate also fell below forecasts, and wage growth moderated. The weaker-than-expected labor figures may prompt the Reserve Bank to reconsider rate increases, as the current market suggests further hikes may not be necessary.
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