What is it?
The unemployment rate is the percent of people who are able to work that do not have a job. When the economy is in decline and jobs are less available, the unemployment rate is expected to go up. When the economy is growing and jobs are available and being created, it can be expected for the unemployment rate to go down.
What are the Expectations for the NZD Unemployment Rate Release?
Previously in February 2021 the unemployment rate was at 4.9%. The expectation for May 2021 is for the unemployment rate to be unchanged at 4.9%. Will that be the case?
What happens if...
We see an unemployment rate higher than 4.9%? If we are to see an increase in unemployment to, for example, 5.5%, then the NZD is expected to depreciate as a higher unemployment rate signals a weakening economy.
What happens if...
We see an unemployment rate lower than 4.9%? In the situation we see a lower number, we can take that as a signal that the New Zealand economy is getting stronger. Naturally, this will mean that the NZD will increase in value versus other currencies.
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