The number of jobs in New Zealand fell at its fastest rate in 19 years in the March quarter, as the economy slowed sharply.

Most economists had expected the jobless rate to stay steady, with higher unemployment not expected to take hold until later in the year.

But the sharp fall in jobs has led to speculation the Reserve Bank may bring forward interest rate cuts, which hadn't been expected until the end of this year.

The Bank has held rates steady despite the economic slowdown, in the face of ongoing inflationary pressures.

Meanwhile, house sales in New Zealand continue to slide.

Figures out on Thursday showed house sales were down 40 percent in the first quarter of this year, compared to the same period in 2007.

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