Stephen Toplis: BNZ Head of Research forecasts unemployment will climb past 5 percent

Heather du Plessis-Allan Drive

Economists forecast unemployment will climb higher.

New data shows it reached 4.3 percent in March, up from 4 percent in the December quarter.

This comes at a time where higher interest rates are biting, as the Reserve Bank tries to rein in inflation.

BNZ Head of Research Stephen Toplis says it could go as high as 5.5 percent.

"We're really sort of experiencing, I think, the worst of things at the moment. But before the labour market turns around, you're probably looking at another six to nine months after that. So I think the unemployment rate keeps rising until the middle of next year."

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