There are signs in today’s unemployment figures that the economy may be cooling.

To the surprise of the markets, unemployment rose in the March quarter from 3.6 to 3.9 percent. Hours worked fell 1.8 percent from the high of December 2004.

The increase in unemployment was caused mainly by an increase in male unemployment.

A fall in part-time employment caused a slowdown in employment growth.

Unemployment rates in the March 2005 quarter stood at 8.8 percent for Mäori, 7.9 percent for the ‘Other’ ethnic group, 6.7 percent for Pacific peoples, and 3.1 percent for the European New Zealanders.