WELLINGTON, May 6 (Xinhua) -- New Zealand's unemployment rate eased to 5.3 percent in the March 2026 quarter from 5.4 percent in the December 2025 quarter, Stats NZ said on Wednesday.

The statistics department reported the number of unemployed falling to 163,000 in the March 2026 quarter from 165,000 in the December 2025 quarter, with the employment rate standing at 66.7 percent.

The underutilization rate, a broader measure of untapped labor market capacity than unemployment, remained the same at 12.9 percent, with 406,000 underutilized people in the March 2026 quarter, the department said, adding the measure includes unemployed and underemployed people, as well as those in the potential labor force.

Meanwhile, annual wage inflation was 2 percent in the March 2026 quarter, compared with a 3.1-percent rise in the consumer price index, while average ordinary-time hourly earnings reached 44.12 NZ dollars (26.11 U.S. dollars), Stats NZ said.

The proportion of young people aged 15 to 24 not in employment, education, or training (NEET) rose to 14.4 percent in the March 2026 quarter from 13.3 percent in the December quarter, it said, highlighting the growing difficulty for young people entering the labor market.

Young women continued to face higher disengagement rates than men, with the NEET rate for women aged 20 to 24 rising 1.9 percentage points to 20.3 percent in the March 2026 quarter, Stats NZ labor market spokesperson Abby Johnston was quoted as saying.

Economists warned that the Middle East conflict and rising fuel costs could dampen business sentiment, likely leading firms to pause hiring in the coming months. ■