Figures from Stats NZ show New Zealand’s seasonally adjusted unemployment rate stood at 5.2% for the June 2025 quarter, the highest unemployment rate recorded since 2020.
The latest figure is slightly lower than the 5.3% predicted by the economists but aligned with the Reserve Bank’s forecasts.
In the June 2025 quarter, there were 158,000 seasonally adjusted unemployed people, up from 156,000 in the March 2025 quarter.
Over the year, the number of unemployed people increased by 16,000.
Regionally, Auckland’s unemployment rate rose by 1.5% over the year, climbing from 4.6% in the June 2024 quarter to 6.1% in the June 2025 quarter. The number of unemployed people in Auckland also grew by 15,000 annually.
Year-on-year, Auckland experienced a decrease of 23,100 employed people, alongside a decline in its total labour force.
According to labour market spokesman Jason Attewell, “Labour market conditions have changed considerably in the last few years. Since the June 2022 quarter, the unemployment rate has risen by 1.9 percentage points.”
“The underutilisation rate has risen by 3.5 percentage points over the same period.”
“Wages continued to grow, although at a slower pace compared with June 2024,” Attewell added.
Annual wage inflation was 2.4%, down from 4.3% in the June 2024 quarter, while average ordinary time hourly earnings reached $43.39, representing a 4.5% increase compared to a 5% rise in the June 2024 quarter.
Finance Minister Nicola Willis said that although the unemployment rate was lower than Treasury’s forecast, the government remained “not satisfied” with the figure.
“We are concerned for every New Zealander who wants a job and can’t get one.”
Willis noted that the government had put considerable effort into rebuilding the economy, focusing on managing inflation, lowering interest rates, and restoring economic growth.
“Those are the conditions that lead to a fall in unemployment, and we have long known that until we had those conditions in place, it would be very challenging to get the unemployment number down.”
She believes that the government was making “good progress” in economic recovery, highlighting slower inflation and reduced interest rates.
Meanwhile, for labour leader Chris Hipkins, the latest figures serve as “clear proof” that the government is failing New Zealanders.
“While thousands of people are out of work and struggling to pay the bills, Luxon is looking after property speculators and fossil fuel companies. He has abandoned middle New Zealand.”
“What’s worse is that these figures don’t even include the thousands of Kiwis who have left for Australia to find work that should be available here.”