Low unemployment is a key cause of high house price in my opinion.

And it don't get any lower than this.

Unemployment falls to record low
New Zealand's unemployment rate fell to a 20-year low of 3.5 per cent in the September quarter putting New Zealand's jobless rate among the lowest in the world.

Unemployment is down from 3.6 per cent in the June quarter, Statistics New Zealand (SNZ) said today, a fall of 2000, driven by a drop in female unemployment.

But actual employment fell by 0.3 per cent, or down 7000 during the quarter against economists' forecasts of a 0.4 per cent increase.

The number in work was 2.15 million in the September quarter, the second highest level since the survey started in 1986.

In the past three months, 6000 more people moved into part-time work, but 10,000 full time jobs disappeared.

Lower unemployment had been expected to leave Reserve Bank governor Alan Bollard deeply concerned about potential inflation, but the figures present a mixed picture because of the drop in full-time job numbers and a lower participation rate, down to 68.3 per cent, down from 68.8 per cent in the previous quarter.

The central bank had forecast unemployment to remain at 3.6 per cent, the same as the average market pick for the September quarter.

Maori unemployment remained at 8 per cent, with Pacific Islanders on 4.9 per cent, and at just 2.4 per cent for European New Zealanders.

Southland had the lowest unemployment rate at 2.4 per cent, but that was up from 2.0 per cent in the June quarter.

It was followed by Taranaki, down to 2.5 per cent from 3.9 per cent and Canterbury, down to 2.6 per cent from 3.2 per cent and Tasman/Nelson/Marlborough/West Coast, down to 2.6 per cent from 3.3 per cent.

Northland had the highest rate – up to 5.3 per cent from 3.3 per cent, followed by Manawatu/Wanganui, at 5.0 per cent from 5.1 per cent.

Unemployment in the Auckland region rose to 3.7 per cent from 3.3 per cent.

http://www.stuff.co.nz/print/4266247a13.html