A large number of people entering New Zealand's workforce pushed the unemployment rate back above 5 per cent but also meant the labour force participation rate reached an all-time high, data from Statistics New Zealand shows.
The unemployment rate rose to 5.2 per cent in the three months ended December 31 from a revised 4.9 per cent in the September quarter, Statistics New Zealand said. Economists had been expecting the unemployment rate to ease back to 4.8 per cent. The New Zealand dollar fell to 73.08 US cents from 73.38 cents immediately before the figures were released.
Employment grew 0.8 per cent in the quarter to 2.51 million while the working-age population grew 0.5 per cent to 3.76 million. The participation rate was an all-time high of 70.5 per cent, While recent changes to methodology means comparisons with earlier periods aren't easy to make, the working-age population has been bolstered by record migration.
"The December quarter saw a large number of people enter the labour force," labour and income statistics manager Mark Gordon said in a statement."But while the number of people in employment has risen, so has the number of unemployed people."
The retail trade, accommodation and food services industry was the largest contributor to employment growth over the latest quarter. This was followed closely by the construction and profession services industries, the government agency said. Over the quarter the nation's largest city of Auckland had the highest job growth while the Gisborne/Hawkes Bay regional council area had the highest unemployment rate.