A newly published Analytical Note, by Senior Adviser Christopher Ball, proposes improvements to the methodology used by the Reserve Bank of New Zealand -Te Pūtea Matua (RBNZ) to assess labour market indicators of inflationary pressure. The key indicators are: • The job transition rate (the share of workers switching between jobs). • The job vacancy-to-unemployment ratio. • The unemployment rate, and a survey measure of labour as a limiting factor for business production. The RBNZ has always monitored the labour market as part of setting monetary policy. It looks at a broad range of 44 indicators and how they ... (full story)