The jobless rate rise to 5.3% in the September quarter is the highest since late 2016.
Northland already makes a critical economic contribution, NZIER says.
Annual inflation rose to 2.7% in the June quarter, below expectations of just under 3%.
Fresh data suggests economy still not firing on all cylinders nearly a year after first interest rate cut.
WATCH: Both the RBNZ and RBA are expected to cut their respective cash rates next month once more data flows through the system.
The central bank is closely monitoring inflation, which is hovering near the top end of the 1-3% target band.
More economists expect the central bank to hold the official cash rate at 3.25% amid geopolitical and trade uncertainty.
The latest NZIER business survey reveals improved confidence about the months ahead with further interest rate relief.
Finance Minister targets value for money, asking the central bank to look for cost efficiencies.
They are at the forefront of businesses’ immediate concerns, Stephen Jacobi says.