NZ Unemployment Steady, Global Trade Risks Grow

New Zealand's unemployment rate held steady at 5.1% in the March 2025 quarter, outperforming the forecasted 5.3% but still reaching a four-year high amid a soft labor market and rising underutilisation at 12.3%. The economy added 2,000 jobs during the quarter, but the number of unemployed increased by 22,000 over the past year, with a significant shift from full-time to part-time work, particularly among women. Private sector wage growth slowed to 2.6% annually, the lowest in four years, while public sector wages increased more robustly. The Reserve Bank of New Zealand has already cut rates aggressively and is expected to consider further cuts due to ongoing risks from US tariffs and global trade uncertainty. Finance Minister Nicola Willis called the unemployment rate encouraging but stressed the need for responsible fiscal management as economic challenges persist. Broader global trade issues, including US-China negotiations, continue to add to financial system risks in New Zealand.