Robust Labor Market May Threaten RBNZ's Dovish Stance

New Zealand?s labor market remained tight during the first half of the year, as Q2 unemployment rate declined to an all-time low of 3.6 percent and the metric for Q1 was revised upwards to 3.7 percent.

Quarterly labor force participation rate surged to 68.6 percent, a record-high since the inception of the data series by Statistics New Zealand. The resilience of the labor market, despite a series of four consecutive OCR hikes, led to speculation that RBNZ?s dovish stance on further anti-inflationary measures may be pre-mature. Robust domestic employment may manifest into wage growth and subsequently lead to increased consumer spending, fueling the concerns of the central bank.
[B]New Zealand?s Tax Receipts, Revenues for June[/B]
Expected: n/a
Previous: n/a

Unemployment Rate (2Q)[/B]
Expected: 3.6%
Previous: 3.7%
[B]Employment Change (QoQ) (2Q)[/B]
Actual: 0.7%
Previous: 1.2%
[B]Employment Change (YoY) (2Q)
[/B]Actual: 1.5%
Previous: 1.7%

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