NZ unemployment jump whacks Australian dollar again

NZ Stats surprised with rising unemployment this morning versus expected flat:

  • Unemployment rate rose to 4.3 percent
  • Underutilisation rate rose to 12.1 percent
  • Employment rate fell to 67.8 percent
  • Filled jobs rose 1.3 percent
  • Average ordinary time hourly earnings rose to $31.63
  • Wage rates increased 1.9 percent annually.

The NZD took a pounding dragging the AUD to the brink of the 70s once more:

Hero to zero.

Comments

    • kiwikarynMEMBER

      I can only pray. This is probably the rise in minimum wage starting to show up, as businesses cut back staffing levels. Plus the rise in benefit payments, encouraging many to not even bother looking for work. Now we will all get whacked with higher taxes to pay for all the unemployed.
      On another note, house listings in my region have lifted around 40% from Sept last year, with houses still on the market from October. Which in a region with a dire housing shortage, is saying something.

      • Yet we both scratch our heads as to how property in NZ just keeps holding up. More and more supply hitting the market, international buyers drying up, wage increases non-existent. Like I keep saying – not sure how NZ does it? What is it that I don’t understand with the place? Amazing considering everything… or is reality going to catch up very soon? Entry level houses 600K odd? Yet average wages are around 60K or less…. with unemployment rising.. .yet property holds up… it does not make sense… property prices keep marching north or holding steady per recent reports.

      • Because Jacinda asked the banks if they had been naughty and the banks said they hadn’t. That was considered to be satisfactory, so Jacinda looked away, and the banks went back to their illegal lending practices, safe in the knowledge that they will never be caught (and now, as Australia has proven, even if they are caught, nothing will happen to them). So unlike Australia we don’t have a credit supply problem, and as prices are not falling, we don’t have a credit demand problem either. Something else is going to have to prick this bubble.

      • Very interesting. Thanks for that insight. It explains a lot. Will become a cracker once interest rates start rising…. all the liar loans in the world are not going to save a lot of the speculators.

  1. – I am surprised to see that it took this long for the NZ unemployment to move higher.
    – Do the data show what happened with the amount of construction workers in NZ ? That should give a good clue where construction is heading.

  2. kiwikarynMEMBER

    Also note, that they changed the way they measure unemployment – under the old measurement, the rate would have been higher at 4.4%. So that’s a 10% jump in a quarter.