2  BIS central bankers’ speeches  according to a recent survey of New Zealand businesses.6 Conversely, high unemployment puts downward pressure on wages and prices. With that framework in mind, we can look more closely at the factors driving the market and the consequences for inflationary pressure.
Labour supply The labour that is available to be employed (labour supply) is determined by three main factors.7 First, is the working age population, itself a function of demographics and migration. Second, is the share of the working age population that participate in the labour force, either by working or by actively seeking work (the participation rate).