New Zealand – Employment set to increase 3.6% IN 2019, hourly wages to rise 3.1%
New Zealand’s economy is growing, and employment is expected to increase 2.7% in 2019, compared to an increase of 3.6% this year, according to the Half Year Economic and Fiscal Update.
Employment growth is forecast to increase 2.0% in 2020 and 1.6% in 2021. However, the unemployment rate, which reached 4.4% this year on an annual average is forecast to fall to 4.1% next year, 3.9% in 2020 and edge up to 4.0% in 2020.
“As growth picks up, continued labour market tightness, combined with a range of labour market policies, including fair pay agreements, pay equity settlements and minimum wage increases, is expected to underpin a rise in wage growth and contribute to a sustained increase in inflation,” according to the report.
The Treasury’s report indicated hourly wages rose 3.0% this year, and are forecast to rise 3.1% next year, 3.3% in 2020 and 3.5% in 2021.