The financial markets are poised for significant movement as key employment data from the United States and New Zealand is set to be released. The Job Openings and Labor Turnover Survey (JOLTS) is scheduled for release later today, with market estimates pegging December's job openings at 8.09 million, slightly above the 8.00 million recorded in November. The state of the labor market remains a critical factor for Federal Reserve officials in setting policy, especially with the US labor market demonstrating resilience. Additionally, analysts are eyeing New Zealand's quarterly employment report, due later today, amid ongoing economic challenges.
The US labor market continues to garner attention with the upcoming JOLTS report, which is expected to provide insights ahead of the January employment report scheduled for Friday. The market forecast suggests job openings will reach 8 million in December, a slight increase from the previous month. This report is crucial as it forms part of the broader picture of US economic health, with nonfarm payrolls also due for release later this week. The resilience of the US labor market has been a focal point for policymakers and investors alike.
Meanwhile, across the Pacific, New Zealand is grappling with economic difficulties as it prepares to release its employment data for the fourth quarter of 2024. Following a 1% GDP contraction in the third quarter, marking the second consecutive quarter of negative growth, New Zealand's economy is officially in recession. The unemployment rate has been on an upward trajectory, projected to rise to 5.1% from 4.8% in the third quarter. This troubling economic landscape has prompted the Reserve Bank of New Zealand (RBNZ) to take aggressive actions, including a 50 basis point rate cut at its last meeting in November 2024.
The RBNZ's easing cycle reflects its response to mounting economic pressures and signals its commitment to stabilizing the economy amidst rising unemployment and a contracting GDP. As these developments unfold, market participants will closely monitor how these employment figures influence monetary policy decisions in both countries.