RBNZ Governor Christian Hawkesby said the recent deterioration in the country’s labour market was within expectations. Speaking before a parliamentary committee, Hawkesby noted that the rise in unemployment to its highest level since 2016 reflects where the economy stands in the current cycle. “It is hard out there,” he said, adding that the RBNZ expected this period of softness as part of the adjustment following its recent easing moves.
Despite the alignment with forecasts, Hawkesby warned that risks remain elevated, citing a long list of concerns led by global trade fragmentation and intensifying trade wars. He remarked that “we don’t think we’re out of the worst yet,” pointing to persistent global uncertainty that continues to cloud the medium-term outlook.
The Governor also described New Zealand as a multi-speed economy, with regions and industries responding differently to the current slowdown. While some sectors continue to show resilience, others are struggling under higher costs and weaker demand.
