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New Zealand Employment Confidence Hits Lowest Reading Since September 2004

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New Zealand employment confidence fell 12.5 points in the June quarter to 83.1 from 95.6 in the previous quarter, the lowest reading for the survey since it started in September 2004, according to the Westpac-McDermott Miller Employment Confidence index released Tuesday.

The survey revealed a widespread loss of confidence, consistent across regions, ages, and income groups, particularly highlighted by the Middle East conflict, which has brought labor market confidence to record lows.

A net 60% of survey respondents indicated that finding a job is currently difficult, the lowest level since the mid-2010s.

The latest reading is consistent with an expected renewed softness in the jobs market in the coming months, with the unemployment rate projected to reach a cyclical peak of 5.6% by year's end.

While job advertisements have remained steady over the last few months, they are still below pre-pandemic levels.

Meanwhile, workers' perception of job security also fell, hitting their lowest since the Covid lockdown, particularly among young workers who previously showed the most improvement, according to the survey.

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