Mon Sep 23 21:50:50 UTC 2024: ## Job Market Confidence Plummets as Unemployment Rises, Survey Shows
**Auckland, New Zealand** – The New Zealand job market continues to weaken, with a new survey revealing falling confidence among Kiwis regarding job availability. The Westpac-McDermott Miller Employment Confidence Index dropped by 2.2 points in the September quarter, reaching its lowest level since the initial COVID-19 lockdown in 2020.
The survey highlights a growing perception that jobs are becoming increasingly difficult to find, driven by shrinking job vacancies and recent job losses. This trend reflects the prolonged economic slowdown New Zealand has experienced over the past two years.
“The biggest driver of the weakness in confidence has been the perception that jobs are becoming much harder to find,” said Michael Gordon, senior economist at Westpac.
While falling interest rates have boosted consumer and business confidence in other areas, households remain realistic about the time it will take for these positive effects to translate into better job prospects. The survey suggests the unemployment rate has continued to rise, reaching an estimated 5% for the September quarter.
The survey also reveals a mixed outlook for earnings. Past growth in earnings declined for the second consecutive quarter, aligning with the easing wage growth observed in official figures. Expected earnings growth rose slightly, but remains at historically low levels.
The decline in employment confidence is widespread, with seven out of 11 regions experiencing a drop. Auckland recorded the largest decline, trailing closely behind Wellington, the region with the lowest confidence. This suggests the impact of job losses extends beyond the public sector, where cuts have been widely publicized.
“The latest results suggest that the unemployment rate has continued to rise at a faster pace over the last year; we expect it to reach 5% for the September quarter,” Gordon added. “Households also remained downbeat on the outlook for job opportunities a year from now, although that measure did tick slightly higher in the September survey.”
The survey’s findings offer a stark reminder of the ongoing challenges faced by the New Zealand job market, with further deterioration expected before significant improvements are observed.
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