New Zealand's job market is seen to continue to tighten despite the unemployment rate not expected to register an increase in the second quarter of this year.
The latest data published at the start of the Asian session showed New Zealand's unemployment rate rising to 3.3% from 3.2% recorded in the first quarter which was also the lowest level since records began in 1986.
Despite the decline, wage growth showed the opposite reading by rising higher to 3.4%, the fastest rate recorded since 2008.
Labor shortages and capacity constraints are contributing to soaring inflation in New Zealand, prompting the central bank to quickly phase out monetary stimulus.
The Reserve Bank of New Zealand (RBNZ) is expected to raise interest rates by 50 basis points for the fourth time in a row later this month, which will push the official cash rate to 3%.
Kiwi dollar trading dipped after the report was published before rebounding soon after.
While the RBNZ does not have a numerical target for job growth or the unemployment rate, it says employment is above the maximum sustainable level it needs to reach.
At 7.3% in the second quarter, inflation was also well above the 1-3% target set by the central bank.
