AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
_6ff029a61766633234293.png?format=webp&width=1186&height=250)
New Zealand's Unemployment Rate Rises to 5.2% in Q2
ByAinvest
Tuesday, Aug 5, 2025 8:03 pm ET1min read
New Zealand's jobless rate rose to 5.2% in Q2, up from 5.1% in Q1, while the participation rate slipped to 70.5%. The country's job market is in focus as the central bank considers an OCR cut. New Zealand's total new lending decreased in June, and home sales in Auckland rose 9% in July.
Wellington, July 2, 2025 - New Zealand's jobless rate climbed to 5.2% in the second quarter, according to official data released on Wednesday. This marks a slight increase from the previous quarter's 5.1% rate, as employment fell by 0.1% [1].The unemployment rate, which measures the proportion of the labor force that is unemployed, was slightly higher than the 5.2% forecast by economists polled by Reuters. The central bank had also predicted the unemployment rate to be 5.2% [1].
The labor force participation rate, a measure of the percentage of the working-age population that is either employed or actively seeking employment, slipped to 70.5% from 70.7% in the previous quarter. This indicates a slight contraction in workforce engagement [2].
The underutilisation rate, a broader measure of spare labor capacity, climbed to 12.8% from 12.4% in March, suggesting growing slack in the labor market [2].
The Reserve Bank of New Zealand (RBNZ) is expected to consider a cut to the official cash rate (OCR) in August, with market probabilities favoring an 85% chance of a 25 basis points (bp) cut [3]. The decision comes amidst a backdrop of mixed domestic data, with business and consumer confidence softening and labor market indicators signaling cooling conditions.
New Zealand's total new lending decreased in June, while home sales in Auckland rose by 9% in July [3]. These developments highlight the evolving dynamics of the New Zealand economy, with the job market remaining a key focus area for policymakers.
References:
[1] https://www.investing.com/news/economic-indicators/new-zealands-q2-jobless-rate-rises-to-52-4171702
[2] https://tradingeconomics.com/new-zealand/unemployment-rate
[3] https://www.mpamag.com/nz/news/general/westpac-key-labour-market-reports-loom-as-ocr-cut-nears/545093
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet