Unemployment rises to 5.3 per cent

The latest figures from Stats NZ released today, November 5, show unemployment in New Zealand has risen to 5.3 per cent, the highest it’s been in nine years.

In the September 2025 quarter the employment rate was 66.6 per cent, annual wage inflation was 2.1 per cent, and the average ordinary time hourly earnings were $43.60.

Unemployment was 5.2 per cent in the previous June quarter.

“The unemployment rate has been over five per cent for the last four quarters,” labour market spokesperson Jason Attewell says.

“The last time the unemployment rate was 5.3 per cent was in the December 2016 quarter.”

Critics of the coalition Government have been quick to jump on the new unemployment figure, with the New Zealand Council of Trade Unions (NZCTU) saying the rise is “no surprise”.

The NZCTU is calling on the Government to act in response to the new data released by Stats NZ.

“The labour market took another turn for the worse today, with unemployment growing, underemployment growing, fewer hours being worked, and wages are not keeping up with inflation,” NZCTU economist Craig Renney says.

“This data is another sign that the Government’s economic plan is not working.

“Unemployment is particularly acute for young people – with 15,500 more 15–24-year-olds unemployed than at the election.

“Māori unemployment is 10.5 per cent, and Pasifika unemployment is 12.1 per cent.

“A record 406,000 people are underutilised – meaning they want more work, or access to work, but can’t get it.

“Wages increased at their lowest rate for five years, with the Labour Cost Index showing wage inflation of 2.1 per cent, well below actual consumer price inflation of three per cent.

“44 per cent of workers saw no pay increase at all this year and 68 per cent saw a pay increase below inflation.

“Both public and private sector wages are growing at less than inflation.

“Unemployment in New Zealand is now well above the OECD average and comparable countries.

“39,000 fewer people are in full-time work. 160,000 people are unemployed – the highest number since March, 1994.”

Ricardo Menéndez March, the Green Party’s spokesperson for social development and employment, says the Government “must take ownership for its decision to cut thousands of jobs, and then punish those left unemployed”.

“Since mid-2023, this Government has driven the loss of 150,000 jobs in Aotearoa, including 80,000 jobs in the 15-35 age bracket.

“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.

“With unemployment rising to 15.2 per cent for 15-24-year-olds, and 5.2 per cent for 25-34-year-olds, it’s clear this Government is punching down on young people at a disproportionate rate.”

Menéndez March says the Government has cut jobs and punished the unemployed instead of “taxing the wealthy few to create thousands of jobs and quality infrastructure”.

“It never had to be this way. We have a plan to provide people with meaningful work.

“Our Green Jobs Guarantee will deliver an initial 40,000 jobs to rebuild our infrastructure, restore nature, and build homes for people to live in.

“Our Future Workforce Agency, Mahi Anamata, will actively plan for the skills we need.

“We’ll revitalise and supercharge the roaring success of Jobs for Nature, and ensure everyone who wants a good, decent, living wage-paying job will get one.”