New Zealand's Unemployment Rate Falls in 1Q

By James Glynn

SYDNEY--New Zealand's unemployment rate was lower than expected in the first quarter, likely reflecting improved conditions across the economy in the opening months on the year.

Unemployment fell to 5.3% in the quarter, down from 5.4% in the prior quarter, and below the 5.4% rate expected by economists.

There were 163,000 unemployed people in the first quarter, compared with 165,000 in the final quarter of 2025, Stats NZ said Wednesday.

The underutilization rate remained the same at 12.9% in the quarter, it added.

New Zealand was in recovery as this year began, with economists confidently predicting then that lower interest rate would fuel growth and stronger hiring.

However, the country is now being shocked by rising gasoline prices and concerns that inflation will climb quickly, forcing the Reserve Bank of New Zealand to warn it may raise interest rates in coming months.

RBNZ Gov. Anna Breman warned recently that the central bank's mandate of an inflation rate closer to 2.0% "must be achieved."

Still, the RBNZ is also watching for signs of an economic slowdown with the war in Iran remains unresolved.

Write to James Glynn at [e-mail]

(END) Dow Jones Newswires

05-05-26 1943ET