The New Zealand Unemployment Rate is the percentage of the total workforce in New Zealand that is unemployed and actively seeking employment during the previous month. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions.
The effect of unemployment in any economy can never be over-emphasized as consumer spending is directly correlated with labor-market conditions and more significantly, the unemployment rate is a principal indicator of the economic health of the country.
New Zealand rebounded strongly from a recession last year, largely due to its success in eliminating the coronavirus within the borders and reopening its domestic economy well before other advanced nations. The country had been virus-free for months until an outbreak of the highly infectious Delta strain in August.
The unemployment rate has fallen to its lowest level in nearly a year, official data shows the jobless rate in the June quarter fell to 4% from 4.7% in the previous quarter. The rate was better than the forecast of 4.4% and is below the level before the pandemic.
New Zealand’s shift in strategy didn’t come as a surprise to experts noting that the spread of the delta variant makes such approach futile, however, that doesn’t mean New Zealand’s robust approach to managing the pandemic which includes strict border restrictions, quarantine measures, and strong contact tracing hasn’t been effective but continued heavy restrictions are damaging to individuals and society.
Economist predicts the New Zealand economy to grow 5.3%, an upgrade from 4.9% previously envisaged, even as consumer confidence was down by 6.5 points to 98.0 in October. Regardless the positive is that a new high of 2.28 million jobs was reached in September 2021, an increase of 5,690 (0.3%).
Nevertheless, traders should brace themselves up for a period of high volatility as the unemployment report often have a great impact on the FOREX market. A decrease in the Unemployment Rate will usually strengthen the NZD (New Zealand Dollar), while an increase in the Unemployment Rate will usually weaken the NZD (New Zealand Dollar).
The currency pairs that include the NZD (New Zealand Dollar) are mostly affected by the data release. The pairs include NZD/USD, AUD/NZD, EUR/NZD, GBP/NZD, NZD/CAD, NZD/CHF, NZD/JPY, etc.
Time Schedule for the next New Zealand Unemployment Rate Report:
Date: Tuesday. 2nd November 2021.
Time: 10:45pm (GMT + 1).
Author: Francis Idowu
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