The underutilisation rate grew to 13.8%, the highest in over 12 years. We were expecting the Kiwi unemployment rate to peak at 5.6% later in the year, but it came earlier than expected. The March quarter unemployment rate was also revised up, to 5.4% from the previous estimate of 5.3%. While the unemployment rate rising is worrying, we are more concerned with the underutilisation rate. If the size of the labour force hadn’t changed the unemployment rate would still be 5.6%.