New Zealand jobs preview - ANZ

Analysts at ANZ explained that that today’s labour market data are expected to confirm the continuing theme of a “tight” labour market but subdued wage inflation.

Key Quotes:

"Employment growth is due for a weaker quarter (+0.3% q/q), following very strong outturns recently."

"The unemployment rate is expected to be broadly flat, but has been trending lower."

"We expect a tick up to 4.6% from 4.5%, with the participation rate flat at 71%."

"This is consistent with a “tight” labour market. Nonetheless, wage inflation is expected to remain subdued, with LCI private sector wages expected to increase just 0.4% q/q, 2.0% y/y. We expect wage inflation will increase in time, but gradually."