The unemployment rate dropped to 6.3 per cent in the December quarter, the lowest quarterly result since the December quarter of 2008.
Three factors that will play a key role in determining the strength of employment and economic activity through 2014 will be net migration, consumer confidence and inflation, says Auckland Council Chief Economist Geoff Cooper.
"Sustained high migration levels and a less cautious household sector could drive stronger spending and employment outcomes but, with inflationary pressures on the rise, this could well trigger a more aggressive interest rate tightening phase."
"The rebound in employment was enough to offset a significant jump in the labour force - underpinned by rising participation levels and strong net migration figures," says Mr Cooper.
The Auckland economy is estimated to have grown 2.9 per cent year-on-year in the December quarter, taking growth through the year to 2.8 per cent.
