Wednesday, 4th August, 2021
The NZ labour market is back in the spotlight this week, with StatsNZ releasing the Q2 labour market statistics on Wednesday morning (see our preview here). Over the past 6 months, the labour market has tightened significantly as the NZ economy has continued to grow, but with labour supply constrained by international border restrictions. Following the release of the NZIER Quarterly Survey of Business Opinion, the strength of the labour market recovery no longer looks to be in doubt. We expect the Q2 labour market data to confirm this strength. We expect to see the unemployment rate to fall to 4.4%, from 4.7%, with further declines to come over the year ahead.