New Zealand jobless rate unexpectedly rises

Tough job: A sign advertising staff requirements is displayed in a store window in Wellington. New Zealand is experiencing labour shortages and capacity constraints that are contributing to soaring inflation. — Reuters

WELLINGTON: New Zealand unemployment unexpectedly rose from a record low in the second quarter, but wages rose at the fastest pace in 14 years, suggesting the central bank may need to keep raising interest rates aggressively to tame inflation.

The jobless rate climbed to 3.3% from 3.2% in the first quarter, which was the lowest level since records began in 1986, Statistics New Zealand said yesterday. Economists expected a decline to 3.1%.