New Zealand’s unemployment rate has climbed to 5.3%, reaching its highest level in nearly nine years, according to fresh data from Stats NZ. Reported by 1News.
The figure marks a steady rise from 5.2% in June and 5.1% in March, with 160,000 people now unemployed across the country.
The underutilisation rate—which includes those unemployed or underemployed—also inched up to 12.9%, the highest since 2020.
Young New Zealanders have been hit hardest, with 15.2% of those aged 15–24 unemployed and 13.8% not in education, employment, or training.
The regions most affected are Northland, Auckland, and Waikato, each recording unemployment rates above 6%.
Meanwhile, salary and wage growth has failed to keep up with inflation, rising just 2.1% over the year compared to a 3% inflation rate.
Finance Minister Nicola Willis said the figures underscored the importance of the Government’s efforts to “rebuild the economy and create new opportunities,” claiming the Government had “fixed the foundations” after a period of “reckless spending and high inflation.”
However, Opposition parties slammed the Government, calling the figures evidence of economic decline. Labour’s Barbara Edmonds accused the Luxon administration of being “out of touch,” saying, “These aren’t just statistics — these are families losing their livelihoods.”
As unemployment climbs and young workers continue to struggle, economists warn that the next few quarters will be critical for the Government’s recovery plan.
Green Party social development and employment spokesperson Ricardo Menéndez March said the Government was "punching down" on young people "bearing the brunt" of unemployment.
"This isn't just an economic crisis. The Government’s economic decisions are creating a social crisis with an immeasurable, disproportionate impact on our young people.