New Zealand's unemployment rate has risen to 5.3% in the third quarter, matching market expectations. This news comes as a slight disappointment to many, as the previous quarter's rate was 5.2%. But here's where it gets interesting: the labor market is showing signs of softening, not collapsing. This means that while employment growth has stalled and participation has slipped, it's not a complete breakdown. The participation rate, for instance, has only edged down to 70.3%, which is still relatively high. The data points to a cooling jobs backdrop, with slower economic growth putting a hold on hiring. Wage pressures are also showing only modest momentum, rising by 0.5% in the private sector hourly earnings excluding overtime and 2.1% year-on-year, in line with forecasts. This suggests that the Reserve Bank of New Zealand (RBNZ) may continue its policy easing path until clearer signs of better growth emerge. But this is where it gets controversial: some economists argue that the RBNZ should be more aggressive in tightening policy to combat inflation. So, what do you think? Is the RBNZ's current approach the right one, or should they be doing more to address inflation? Share your thoughts in the comments below!
