Market Flux Event
New Zealand Unemployment Hits 11-Year High as Australia PMIs and Industrial Indexes Signal Broad Contraction
Read this in the Market Flux appNew Zealand's labor market deteriorated sharply in the third quarter of 2026, with the unemployment rate rising to 5.7%, its highest level since 2015, exceeding the 5.5% forecast and above the prior reading of 5.6%. Employment fell 0.1% quarter on quarter, far below the 0.4% gain expected and reversing the previous 0.3% gain, while the participation rate slipped to 70.4% from 70.7%, also below forecasts. Wage growth continued to cool, with private wages excluding overtime rising just 0.4% for the quarter against the 0.5% forecast and down from 0.7% previously, and average hourly earnings grew only 0.3% after a 1.4% gain in the prior period.
The labor cost index came in at 0.4% quarter on quarter, below the 0.5% forecast, and slowed to 2.0% year on year from 2.1%.
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Sources
- Financialjuice🔴 NEW ZEALAND UNEMPLOYMENT RATE ACTUAL 5.7% (FORECAST 5.5%, PREVIOUS 5.6%) $MACRO
- LiveSquawkNew Zealand Employment Change (Y/Y) Q3: 0.7% (est 1.6%; prev 1.2%; prevR 0.9%) - Unemployment Rate: 5.7% (est 5.5%; prev 5.6%) - Participation Rate: 70.4% (est 70.7%; prev 70.7%; prevR 70.6%) - Private Wages Ex Overtime (Q/Q): 0.4% (est 0.5%; prev 0.7%) - Private Wages Incl Overtime (Q/Q): 0.5% (est 0.5%; prev 0.7%) - Average Hourly Earnings (Q/Q): 0.3% (prev 1.4%)
- PiQMarkets🇳🇿 New Zealand Labor Cost Index (YoY) (Q3) $NZD Actual: 2% Previous: 2.1%
- FirstSquawkAUSTRALIA’S FINAL COMPOSITE PMI CAME IN AT 48.2 AND THE SERVICES PMI AT 48.5, BOTH IN CONTRACTION