Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Wednesday, August 6, 2025, and here are five stories you should know about. New Zealand's seasonally adjusted unemployment rate reached 5.2% in the June 2025 quarter, the highest level since 2020, according to Stats NZ. The figure was slightly lower than economist expectations and in line with Reserve Bank forecasts. Unemployment in Auckland rose sharply to 6.1%, with 15,000 more unemployed people than a year ago. Nationally, the number of unemployed increased by 16,000 year-on-year. The underutilisation rate, a broader measure of labour slack, climbed to 12.8%. The employment rate fell to 66.8%. Average hourly earnings rose to $43.39. Wage inflation was 2.4%, slower than last year. The New Zealand dollar remained stable. In other news, whole milk powder prices surpassed US$4000 per tonne in August for the first time since 2013, according to NZX Dairy data. Fonterra's auction recorded a 2.1% rise in whole milk powder to US$4012 a tonne, while skim milk powder edged up 0.4%. Butter prices dropped 3.8% to US$7214 a tonne. Fonterra's milk price for the past season is yet to be confirmed but stands at $10 per kilo milk solids for both the previous and current seasons. A low New Zealand dollar at 59 US cents is supporting prices. June milk production increased 17.8% year-on-year. Turning to politics, the Government has allocated $25 million for a possible referendum on four-year parliamentary terms, planned to run alongside next year's election. Cabinet has approved the funding in principle, with a final decision expected in September after a select committee report. The budget is 25% lower than initial estimates, with $6.2 million for public information campaigns and $18.8 million for the Electoral Commission to conduct the referendum. The question wording and legislative details remain under review. The funding covers both this and the next fiscal year, with planning already underway at the Electoral Commission. In a separate development, Kiwibank has been warned by the Financial Markets Authority for overcharging more than 8,600 customers just over $912,000 over 13 years due to a fee waiver error on joint accounts. The issue, occurring between July 2011 and November 2024, was self-reported by Kiwibank after a customer complaint and an internal review. The bank says it has reimbursed affected customers and strengthened internal controls. The FMA's Louise Unger says clear communication and robust systems are essential to prevent such errors. Most overcharging occurred after the 2013 Financial Markets Conduct Act came into force. And finally, Downer is set to play a significant role in New Zealand's major project pipeline, with $111.6 billion in funded projects reported by the Infrastructure Commission. Managing Director Murray Robertson says the infrastructure pipeline includes $70.9 billion for transport over ten years. Downer is involved in projects such as the Northern Corridor and Auckland City Rail Link. Its Hawkins unit is delivering projects including Auckland Airport's new terminal and hospital upgrades. Downer maintains over 50,000 kilometres of roads, employs 8,000 people, and recently developed a New Zealand Infrastructure Resilience Index to guide regional investment priorities. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related