Unemployment rate rises to near nine-year high – Stats NZ

The unemployment rate has risen to a near nine-year high of 5.3%, according to new figures released by Stats NZ today.

It was another nudge up from the previous figure of 5.2% in the June 2025 quarter and 5.1% in the March 2025 quarter.

“The unemployment rate has been over 5% for the last four quarters. The last time that the unemployment rate was 5.3% was in the December 2016 quarter”, said Stats NZ labour market spokesperson Jason Attewell.

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There were 160,000 unemployed people in the September 2025 quarter. In the June 2025 quarter, there were 158,000.

The increase was in line with what economists had expected, with the vast majority tipping the rate to land at 5.3%.

The underutilisation rate, which measures untapped capacity in the labour market and includes those unemployed or underemployed, was 12.9%, up from 12.8% in the June 2025 quarter. This is the highest rate since late 2020.

The level of unemployment of young people between 15 and 24 years was 15.2%, with the total not in education or training rising to 13.8%.

The regions with the highest unemployment were Northland, Auckland and Waikato with rates of more than 6%, with all South Island regions below 5%.

Salary and wage rates increased 2.1% in the year to September, out of step with the 3% inflation increase.

Private sector wages increased 2.1% over the year while public sector wages rose 2.4%.

Willis says Govt has ‘fixed the foundations’

Finance Minister Nicola Willis said the labour market statistics highlighted the importance of the Government’s work “to rebuild the economy and deliver more opportunities for Kiwis”.

“Our Government is determined that New Zealanders who are seeking work can find it. That‘s why we’re so focused on strengthening the foundations from which local businesses can grow and create new jobs.”

She said the Government had worked hard to fix “damage done to our economy during a period of reckless government spending, sky-high inflation and rising interest rates”.

“We’ve successfully fixed the foundations. Taxes have been reduced. Inflation is back in band. Interest rates have fallen. Recovery is underway.”

Willis acknowledged there was more to do to accelerate the economic recovery.

“New Zealanders have worked incredibly hard for economic recovery. Now is not the time for expansive new taxes, or a return to reckless fiscal management. Now is the time for our Government’s plan to back aspiration, effort and job-creation.”

‘Out of touch’, ‘deliberate move’: Opposition parties slam Govt

Labour’s finance and economy spokesperson Barbara Edmonds said the unemployment figures were proof the economy was “going backwards” under Luxon.

“The unemployment rate is now at its highest level in nearly a decade. That’s 160,000 people unemployed, the highest number since 1994 and about the same size as the population of Tauranga.”

With a youth unemployment rate of 15.2%, she said it was “no wonder” more than 200 Kiwis were packing up and leaving for jobs overseas.

“These aren’t just statistics, these are families losing their livelihoods. Luxon’s Government is so out of touch that even his own Finance Minister told people not to take losing their jobs personally.”

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.

He accused the Prime Minister of misleading the public and “pretending job losses were inevitable”.

“This was a deliberate move by this Government to cut jobs and punish the unemployed instead of taxing the wealthy few to create thousands of jobs and quality infrastructure.”