The Statistics Agency of New Zealand released labor market data for the first quarterly period of 2025, which ended in March, late on Tuesday evening. The data was varied compared to market expectations.
According to the released data, New Zealand's employment level improved in the first quarter of 2025 by 0.1%, which matched market expectations and was also better than the previous quarter, during which employment size contracted by approximately 0.1% and was revised to a contraction of 0.2%.
At the same time, the unemployment rate in New Zealand did not record any significant increase compared to the previous quarter, remaining stable at 5.1% year-on-year, but it was better than market expectations which anticipated an increase in unemployment to approximately 5.3%.
The change in employment is considered a leading indicator for measuring consumer spending, as it reflects the overall performance of the economy; despite the data being released very late, it is regarded as an early indicator of employment conditions in New Zealand and typically has a strong impact on currency markets.
Furthermore, the number of unemployed individuals serves as a signal of economic health, as consumer spending is closely linked to labor market conditions. Additionally, the unemployment rate indicator serves as an influential factor in the decisions of the Monetary Policy Committee; if the indicator reading shows an increase, it indicates a decline in the performance of the employment market in New Zealand.
