New Zealand's unemployment rate hit a record low of 3.5 percent in the September quarter, the lowest rate since the current measure was adopted in 1986, Statistics New Zealand said. New Zealand's unemployment rate is the fifth lowest in the OECD club of developed nations, with Norway boasting the lowest rate of 2.5 percent.
The rate was down from 3.6 percent in the previous three months but the figures also showed that employment fell by 0.3 percent as fewer people sought work. During the quarter, the work force participation rate - those in work or looking for it - fell from a record 68.8 percent to 68.3 percent.
The New Zealand dollar fell almost one US cent from 77.75 US cents to 76.80 after the announcement. But dealers said global market volatility was the dominant factor, rather than the softening outlook for employment. Economists said, however, the decline in employment was seen as reducing inflationary pressures, making another interest rate rise less likely. "The labour market is a key area of concern for the (central) bank, and it's still tight but progress is being made," said UBS economist Robin Clements.
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