(Adds details, NZ$ reaction)
SYDNEY, May 5 (Reuters) - New Zealand's unemployment rate fell unexpectedly in the March quarter as the economy created more jobs than forecast in a hopeful sign of an extended recovery.
Data released by Statistics New Zealand on Wednesday showed the jobless rate fell to 4.7% in the first quarter, when analysts had expected it to hold at 4.9%.
That was the lowest since the second quarter of last year when pandemic lockdowns saw the unemployment rate surge up from 4.0%.
The New Zealand dollar NZD=D3 rose 20 ticks on the upbeat news to reach $0.7170.
The seasonally adjusted number of employed rose 0.6% in the first quarter, again topping forecasts of a 0.2% increase, while the participation rose to a one-year top of 70.4%.
New Zealand's early response to the pandemic has allowed the economy to return to pre-pandemic normalcy, though a lack of foreign tourists has badly hit key sectors.
The country did recently open a travel bubble with Australia which could help generate more jobs in the current quarter.