By James Glynn
SYDNEY--Consumers in New Zealand were more upbeat about their job prospects in the fourth quarter, despite ongoing concerns about a rise in the cost of living and impact of higher mortgage interest rates.
The Westpac McDermott Miller Employment Confidence Index rose by 1.4 points to 99.7 in the fourth quarter. The Index remains down substantially from its peak of 115.2 in the third quarter of 2022.
"The rise in the ECI this quarter was largely due to a pickup in households' earnings growth over the past year," said Westpac senior economist Michael Gordon. "We suspect that households remain mindful of the rising cost of living."
Even consumers that have managed to secure a large pay raise may still feel they are struggling to get ahead of the rise in prices, he added.
Finding and holding a job remain the biggest concerns for New Zealanders in the survey with perceptions about job availability continuing to fall in the fourth quarter.
The fall likely reflects both the decline in vacancies, and increased competition for those roles as net inward migration has surged, he added.
"Public sector employees are indicating that they have real concerns regarding their future job security."
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
01-22-24 1724ET
