New Zealand’s labour market deteriorated further in the second quarter, with the jobless rate rising to 5.2%, the highest since late-2020. Statistics New Zealand said employment slipped 0.1% from the previous quarter and declined 0.9% on the year, while the participation rate fell to 70.5%. The headline unemployment figure nonetheless came in marginally below economists’ 5.3% consensus but exceeded the first-quarter reading of 5.1%. Wage growth offered only partial relief. Private-sector ordinary-time earnings excluding overtime rose 0.6% on the quarter, and average hourly earnings increased 1.9% on the month. The softer labour demand alongside subdued pay gains underscores a cooling economy and has revived speculation that the Reserve Bank of New Zealand could restart interest-rate cuts later this year. The New Zealand dollar initially fell on the data but later pared much of the loss.