Story perspectives

New Zealand Faces Labor Market Weakness and Rising Unemployment

7/5/2025

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Summary

Story summary

New Zealand's labor market is weakening, with employment levels reverting to early 2023 figures.
Economists anticipate the unemployment rate, currently at 5.1%, will increase throughout the year.
Mortgage rates have fallen below 5%, the lowest since March 2022, though future cuts remain uncertain.
The Reserve Bank of New Zealand has reduced the official cash rate to 3.25%, with potential pauses ahead.
Home prices rose less than 1% in the first half of 2025, with a projected 3% increase by year-end.

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Story summary

New Zealand's labor market is weakening, with employment levels reverting to early 2023 figures.
Economists anticipate the unemployment rate, currently at 5.1%, will increase throughout the year.
Mortgage rates have fallen below 5%, the lowest since March 2022, though future cuts remain uncertain.
The Reserve Bank of New Zealand has reduced the official cash rate to 3.25%, with potential pauses ahead.
Home prices rose less than 1% in the first half of 2025, with a projected 3% increase by year-end.