Photo: 123rf
Employment confidence has fallen to its lowest reading in two years as job opportunities narrow.
The Westpac McDermott Miller Employment Confidence index for the June quarter fell by 3.9 points to 105.6 in the June quarter. A figure above 100 indicates the number of optimists outnumbered pessimists in the survey.
The survey was conducted in early June with 1560 respondents.
Westpac senior economist Michael Gordon said perceptions around the availability of jobs were the biggest contributor to the fall in confidence.
"This measure often provides a lead on the direction of the unemployment rate," he said.
"The latest reading suggests that unemployment is on track to rise further from its lows over the course of this year."
The latest employment data from Stats NZ showed e unemployment rate was 3.4 percent however some economists have forecast this would rise as high as 5 percent by the end of the year.
While households remained positive on balance about conditions in the labour market, the survey produced the lowest reading for the index since June 2021, Gordon said.
He said confidence about households' earnings growth fell in the June quarter, though this measure had remained at low levels since the beginning of the pandemic.
"We suspect that households have an eye to the rising cost of living," Gordon said.
"Even those who have managed to secure a cost-of-living pay rise will feel like they're having to run hard just to stand still."