New Zealand: Labor market improves in Q3
November 7, 2013
The economy added 27,000 new jobs in seasonally-adjusted terms in Q3, following the revised 10,000 jobs created in Q2 (previously: 8,000 jobs). The third quarter reading is the result of gains in both part-time positions (+8,000 jobs) and in full-time jobs (+17,000 jobs) compared to the previous quarter.
As a result of the positive development in the job market, the seasonally-adjusted unemployment rate fell from 6.4% in the second quarter to 6.2% in the third. The reading undershot the 6.3% rate the market had expected.
In its September Monetary Policy Statement, the Reserve Bank of New Zealand said that it expects the unemployment rate to drop to 5.7% by the end of fiscal year 2013 (ending March 2014) and to dip to 5.1% in fiscal 2014 (ending March 2015).
FocusEconomics Consensus Forecast panelists expect the unemployment rate to average 6.1% in 2013, which is down 0.2 percentage points from last month's forecast. For 2014, the panel expects the unemployment rate to average 5.6%, which is down 0.1 percentage points from last month's projection.
Author: Ricardo Aceves, Senior Economist