With the Kiwi economy turning, the labour market is finding its feet and stabilising. We expect next week’s labour market statistics from StatsNZ to reflect a jobs market that is stabilising. That said, labour market conditions are set to remain soft with a meaningful unwind in spare capacity still a while away yet. Because while our economic recovery may indeed be underway, the labour market tends to be the last indicator to turn. We need to see the labour market really turn, not just stabilise, to have confidence in the recovery.