New Zealand economy: watching for labour market report - ANZ

Analysts at ANZ explained that a tightening labour market (which data this week should confirm) in New Zealand is natural given the maturing nature of the business cycle. 

Key Quotes:

"However, when firms are telling us that finding staff is their biggest problem, despite record net migration and the highest participation rate ever, it speaks to the strength of the demand and a skills mismatch that is only likely to worsen given the interaction of huge secular factors (technological, climate and demographics to name but a few).

This will present a significant challenge for policymakers and the education system / necessary re-training / evolution of the workforce. In other data this week, new lending and credit growth figures are expected to continue slowing, while migration figures will no doubt remain strong."