New Zealand Jobless Rate Highest Since Q3 2015

New Zealand's seasonally adjusted unemployment rate edged up to 5.4% in the December 2025 quarter, higher than both the previous quarter and market expectations of 5.3%. This was the highest jobless rate since the September 2015 quarter, as the number of unemployed individuals rose by 5,000 from the prior quarter to 165,000. At the same time, employment rose marginally during the quarter. The labour force participation rate also rose to 70.5% from 70.3%, signaling a modest increase in workforce engagement. The underutilisation rate, a broader measure of spare labour capacity, stood at 13.0% and was well above the 12.2% level a year earlier. These figures pointed to higher engagement in the labour market amid mixed signals on slack, suggesting a tentative improvement in conditions.

New Zealand's seasonally adjusted unemployment rate edged up to 5.3% in the September 2025 quarter from 5.2% in the previous period, matching market expectations. This was the highest jobless rate since the fourth quarter of 2016, as the number of unemployed individuals rose by 2,000 from the prior quarter to 160,000. At the same time, employment growth stalled during the quarter. The labour force participation rate also fell to 70.3% from 70.5%, signaling a modest decline in workforce engagement. The underutilisation rate, a broader measure of spare labour capacity, ticked up to 12.9% from 12.8% and was well above the 11.7% level a year earlier. These figures pointed to rising slack in the labour market amid a softening economic momentum, underlining the need for further policy stimulus.

New Zealand's unemployment rate edged up to 5.2% in the June quarter of 2025, slightly above the previous quarter's 5.1% and in line with market expectations. The number of unemployed individuals rose to 158,000, up from 156,000 in March and marking an annual increase of 16,000 people, or 11.1%. Meanwhile, the seasonally adjusted labour force participation rate dipped to 70.5% from 70.7% in the previous quarter, indicating a slight contraction in workforce engagement. The underutilisation rate—a broader measure of spare labour capacity—also climbed to 12.8%, up from 12.4% in March and 11.9% a year earlier. These figures suggest growing slack in the labor market, adding pressure on policymakers as economic momentum continues to soften.