Unemployment rate remains 3.4 percent

The seasonally adjusted unemployment rate was 3.4 percent in the March 2023 quarter, unchanged from last quarter, according to figures released by Stats NZ today.

The underutilisation rate – a broad measure of spare labour capacity that includes those unemployed, underemployed, and in the potential labour force – decreased to 9.0 percent, from 9.3 percent last quarter (revised).

“Unemployment and underutilisation rates, as measured by the Household Labour Force Survey, have been sitting at or near record lows for more than a year,” work and wellbeing statistics senior manager Becky Collett said.

In the March 2023 quarter, the labour force participation rate increased to 72.0 percent and the employment rate increased to 69.5 percent. Both are the highest rates recorded since the HLFS began in 1986.

Employment and the working-age population increased by similar levels in the March 2023 quarter, both up 22,000.

Women’s labour force participation reaches new series high

In the March 2023 quarter, the seasonally adjusted labour force participation rate for women increased to 67.7 percent – the highest rate since the series began in 1986.

“Where men’s labour force participation rates have remained fairly stable, women’s rates have been steadily increasing over the last 30 years, narrowing the gap in engagement between men and women in New Zealand’s workforce,” Collett said.

The employment rate for women increased to 65.2 percent in the March 2023 quarter- the highest rate since the series began in 1986.

The employment rate for men remained steady over the quarter at 73.9 percent, remaining the highest rate of male employment since 1987.

Cyclone and flooding impacts

The Household Labour Force Survey collects data on the reasons people employed may have worked fewer hours in their main job or been absent from all jobs. Since the June 2016 quarter, ‘bad weather’ has been an individually measured reason for reduced hours or work absences.

Bad weather responses reached a series high in the March 2023 quarter, surpassing previous winter peaks. The cyclones and extreme flooding during the quarter resulted in 45,100 people working fewer hours in their main job or absent from all jobs due to bad weather, up 35,900 annually.

Despite the size of the increase, ‘bad weather’ reasons may still underestimate the true impact of bad weather on people’s ability to work, since cyclones and flooding also impacted HLFS survey collection.

Cyclone and flooding effects on labour market statistics in the March 2023 quarter has more information on the impacts of extreme weather on data collection and data quality this quarter.

Wages continue to rise

In the year to the March 2023 quarter, all salary and wage rates (including overtime) as measured by the labour cost index, increased 4.3 percent, compared with 4.1 percent in the year to the December 2022 quarter.

Average total weekly earnings (including overtime) per full-time equivalent employee, as measured by the Quarterly Employment Survey (QES), rose 7.1 percent in the year to the March 2023 quarter.

Average ordinary time hourly earnings in the QES rose 7.6 percent in the year to the March 2023 quarter.

Annual wage cost inflation 4.3 percent has more information about wages.