New Zealand's jobs market remains resilient with just a small uptick in the unemployment rate to four per cent.
Stats NZ released new data on Wednesday showing the jobless rate rose from 3.9 per cent in September quarter last year to 4.0 per cent in the December quarter, below market expectations.
It is the first time New Zealand's unemployment rate starts with a four, rather than a three, in two-and-a-half years.
"Unemployment rates have returned to 2019 levels, following recent historic lows," Stats NZ spokeswoman Becky Collett said.
"Low unemployment formed part of the unique economic period from 2021 to 2022, as restricted borders limited increases to labour supply and labour demand remained high."
Market expectation was for a higher figure, with ASB Bank chief economist Nick Tuffley tipping 4.3 per cent, partially due to immigration.
New Zealand added a huge number of migrants last year, with roughly 250,000 arriving and just over 100,000 going the other way.
Mr Tuffley said the "monsoon of people" would both grow unemployment and slow wage growth - one of the driving forces behind higher-than-desired inflation.
"We estimate over 2023 we probably had around 90,000 extra people available wanting to work and we didn't quite create the jobs," Mr Tuffley told Newstalk ZB.
Kiwibank and the Reserve Bank both tipped 4.2 per cent, while Treasury predicted 4.1 per cent.
All projections are that unemployment will continue to climb with Treasury forecasting a jobless rate of 5.2 per cent early next year.
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