Sharechat Logo

English says bubbling jobs market may cool, wage growth and inflation to pick up

Wednesday 1st February 2017

Text too small?

Prime Minister Bill English says he expects employment growth to slow after the labour market achieved a record participation rate in the fourth quarter while signs were that inflation and wage growth would pick up. 

"There's always cycles in an economy, a very large number of jobs were created last year, a lot of people coming into the workforce, the highest participation rate we've ever had," English told journalists at the Beehive. "As the cycle goes through we'll see that slow down and inflation, wage growth pick up."

English said wage growth was "moderate but consistent" and said bond rates were indicating a pickup in inflation.

Figures today showed the participation rate was a record 70.5 percent in the fourth quarter, while wage inflation remained muted, with the ordinary time private sector labour cost index increasing 0.4 percent in the quarter.

The yield on New Zealand 10-year government bonds has climbed from a low in August of about 2.14 percent to about 3.36 percent currently, a move of 1.2 percentage points.

English made the comments at a media conference to announce the next general election would be held on Sept. 23. 

English continued the practice established by predecessor John Key, who believed the public favoured certainty over the election date rather than the tradition of the ruling party keeping the date close to its chest to keep opposition parties guessing. 

English said the economy will always be "the central issue" of the election. 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares mixed ahead of Anzac Day holiday; A2, Synlait fall further, Fisher & Paykel bounces
USX: Introducing Pharmazen Limited
NZ dollar falls to 3 1/2 month low as rising US interest rates bring trading back to fundamentals
Gold Report 23rd April 2018
Gold Report 16th April 2018
Gold Report 9th April 2018
Gold Report 3rd April 2018
Gold Report 26th March 2018
Gold Report 19th March 2018
Gold Report 12th March 2018

IRG See IRG research reports