New Zealand's unemployment rate has fallen to a low 4.9%, despite the increase in the participation rate to 70.6%.
However, the news seems to be good for men and part-time workers but not so good for women, according to figures released yesterday by Statistics New Zealand.
The number of employed people increased 1.2%, or 29,000 people, in the three months ended March.
Men provided the main contribution to the increase.
There were more males in both full-time and part-time employment.
For the sixth quarter in a row, employment growth exceeded growth in the working-age population.
Statistics NZ senior manager Mark Gordon said the unemployment rate of 4.9% was down from the 5.2% recorded in December.
Earlier this week, economists predicted unemployment rates of 5%, 5.1% and 5.2%.
The unemployment rate for men fell from 4.8% to 4.2%, making it the lowest rate since the December 2008 quarter. However, the unemployment rate for women was up slightly at 6%.
ANZ senior economist Philip Borkin said after the surprises in December's figures, yesterday's first quarter data pointed to a labour market back on script and more consistent with anecdote.
''In other words, strong, with both the unemployment and underutilisation rates trending lower and pointing to a market that is tightening.
''At this stage, nominal wage growth remains benign. We do believe conditions are set to change on that front as higher inflation, skill shortages, solid business sector profitability and the likes of the equal pay hospice workers' settlement eventually provide a positive impulse.''
Although employment growth remained strong, alternative measures were softer, he said.
The Quarterly Employment Survey (QES) filled jobs measure rose 0.3% in March and hours paid and hours worked came in at just 0.1% and 0.6% respectively.
The latter reflected a large lift in part-time employment (3.1%) and full-time employment up 0.6%.
The large lift in part-time employment could reflect employers' attempts to be more flexible in an environment in which they were finding it harder to fill vacancies.
ANZ's estimate of the vacancy rate was the highest since 1994, when data began, Mr Borkin said.
The underutilisation and underemployment rates also fell and the overall signal was one of a labour market tightening.
''We believe the tightness of the labour market is not just about the amount of spare labour available right now but also the skills available labour possesses.
''There does appear to be an increasing mismatch with what firms are looking for.''
Real wage growth had softened, Mr Borkin said.
Until now, real wage growth had been ''reasonably strong'', but the latest Consumer Price Index increases had eaten into that.
That factor would be a key driver of higher nominal wage growth in the future, although there was little evidence of that yet, he said.
Council of Trade Unions president Richard Wagstaff said the statistics showed wages in the private sector were falling behind the cost of living and he called for urgent action by the Government.
The average hourly wage grew by only 1.5%, well behind inflation of 2.2% over the year.
Improvements in economic conditions were not being shared by the people who generated the improvements.
''At present, people are keeping up with living costs by working harder rather than from decent increases in their wage rates.
''More couples with children are both working and many people are working longer hours.''
The Government talked about the importance of lifting wages, creating a better, brighter future for working people, Mr Wagstaff said.
