Wednesday, November 4, 2015

New Zealand: Labour demand slows sharply - ANZ

FXStreet (Bali) - Philip Borkin, Senior Economist at ANZ, notes that today’s NZ jobs data will accentuate the bias towards the RBNZ cutting again, and sooner (i.e. December) as opposed to later.

Key Quotes

"Labour demand weakened sharply in Q3, with employment contracting for the first time in three years."

"However, this summary arguably overstates the weakness to some degree, with compositional aspects and other demand indicators generally not as weak."

"Nevertheless, with the unemployment rate continuing to grind higher and wage growth benign, it is certainly a backdrop consistent with a need for more monetary policy easing."

"Today’s figures arguably increase the odds of that easing being delivered as soon as December, but we are not entirely convinced of that yet, with the NZD, dairy prices and the global backdrop arguably set to hold sway."

"Labour market data typically lags the rest of the economy, and more timely growth indicators are now picking up."
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