New Zealand’s employment report showed a strengthening in the first quarter, with unemployment recording a higher -than -expected decline despite an increase in the number of people looking for work (participation rate).
In the Asian session, Statistics New Zealand reported a decline in the unemployment rate at 4.7%, exceeding market expectations to remain at the 4.9% figure recorded in the fourth quarter.
While employment reported an increase of 0.6% from the previous three months, double the projected 0.3%.
New Zealand business confidence recovered in late 2020 after a V -shaped economic recovery, prompting companies to take on more jobs.
Although the unemployment rate has not risen to the level of concern, it is still below the 4% level it reached in 2019. This indicates that the central bank will continue to maintain economic stimulus for some time.
The New Zealand dollar surged higher following the report, causing it to trade stronger against the greenback dollar.
While these positive data will not affect the Reserve Bank of New Zealand (RBNZ) will change current policy, but the economy is clearly performing better than expected.
