Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

New Zealand Jobless Rate Dives, RBNZ Expected to Raise Interest Rate -- Update

08/03/2021 | 05:47pm EDT

(Adds details)

By Stephen Wright

WELLINGTON, New Zealand--New Zealand's jobless rate fell to 4.0% in the second quarter as local employment was boosted by economic stimulus brought on by the pandemic and a shortage of migrant workers because of the closed border.

The drop in the unemployment rate from 4.6% in the first quarter is likely to add to expectations that the Reserve Bank of New Zealand will raise its cash rate from a record low 0.25% this month to head off rising inflation. The median forecast in a Wall Street Journal poll was for a 4.4% unemployment rate.

The statistics agency said the fall in joblessness was consistent with other indicators such as declining numbers of welfare recipients and reports that businesses are having difficulty finding enough workers.

Policy responses to the pandemic have engineered a strong economic bounceback from a strict lockdown in March-May last year, but also turned remote New Zealand's economy into a pressure cooker.

Increased government spending and record-low interest rates have inflated house prices and boosted consumer demand, while the closed border has deprived industries from construction to fruit-growing of sufficient workers.

Businesses are engaged in a "relentless scraping of the barrel for available workers," said Kiwibank chief economist Jarrod Kerr.

The drop in the jobless rate "all but confirms a rate hike from the RBNZ in August," he said.

Write to Stephen Wright at stephen.wright@wsj.com

(END) Dow Jones Newswires

08-03-21 1947ET

Latest news "Economy & Forex"
09/25Deadly U.S. passenger train crashes in recent years
RE
09/25CENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : Contract value of China's infrastructure construction in Africa soars
PU
09/2525 Chinese trade cooperation zones set up in Africa
PU
09/25China welcomes Huawei executive home, Trudeau hugs Canadians freed by Beijing
RE
09/25Three die, some injured as Amtrak train derails in Montana
RE
09/25At least 3 dead and "multiple injuries" in amtrak passenger train derailment in montana -sheriff's office
RE
09/25At least 3 dead after amtrak passenger train derails in north central montana - ap
RE
09/25At least 3 dead after Amtrak passenger train derails in Montana -AP
RE
09/25NATIONAL BUREAU OF STATISTICS OF CHINA : Market Prices of Important Means of Production in Circulation, September 11-20, 2021
PU
09/25China c.bank says sets 14-day reverse repo rate at 2.35% vs 2.35% previously
RE
Latest news "Economy & Forex"