New Zealand’s seasonally adjusted unemployment rate was 5.2 percent in the June 2025 quarter, according to figures released by Stats NZ today.
This compares with 5.1 percent in the March 2025 quarter and 4.7 percent in the June 2024 quarter.
There were 158,000 unemployed people (seasonally adjusted) in the June 2025 quarter, compared with 156,000 in the March 2025 quarter. Annually, unemployment rose by 16,000 people (11.1 percent).
“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,” Stats NZ labour market spokesperson Jason Attewell said.
“The underutilisation rate has risen by 3.5 percentage points over the same period.”
The underutilisation rate was 12.8 percent in the June 2025 quarter, compared with 12.4 percent in the March 2025 quarter and 11.9 percent in the June 2024 quarter.
Underutilisation is a broad measure of untapped labour market capacity that includes unemployed and underemployed people, along with the potential labour force.
The employment rate was 66.8 percent in the June 2025 quarter, compared with 67.1 percent in the March 2025 quarter and 68.3 percent in the June 2024 quarter.
“Wages continued to grow, although at a slower pace compared with June 2024,” Attewell said.
Annual wage inflation was 2.4 percent, compared with 4.3 percent in the June 2024 quarter, and average ordinary time hourly earnings were $43.39, up 4.5 percent (compared with a 5.0 percent rise in the June 2024 quarter).
The number of people aged 15 to 24 in education increased by 18,000 people to 379,900 (not seasonally adjusted) in the year ended June 2025, a 5.0 percent rise from the previous year.
The annual increase in youth in education came primarily from those not in the labour force. This group increased by 20,400 people over the year.
“The annual increase in the number of young people in education corresponded with decreases for both the youth employment rate and labour force participation rate,” Attewell said.
“Current labour market conditions could be influencing young people to enter or remain in education.”
The employment rate for young people decreased from 56.1 percent in the June 2024 quarter to 53.1 percent in the June 2025 quarter. For the same age group, the labour force participation rate decreased from 64.6 percent to 62.3 percent over the same period.
“Although youth engagement in both education and employment looks rather different compared with June 2024, the rate of youth not in employment, education, or training – or the NEET rate – remained similar,” Attewell said.
The NEET rate was 12.2 percent in the June 2025 quarter, compared with 12.0 percent in the June 2024 quarter (not seasonally adjusted).
The unemployment rate in the Auckland region increased 1.5 percent annually, from 4.6 percent in the June 2024 quarter to 6.1 percent in the June 2025 quarter.
Annually, the number of unemployed people in Auckland increased by 15,000.
“As Auckland is New Zealand’s largest region, its labour market tends to strongly influence national outcomes,” Attewell said.
“One-third of New Zealand’s filled jobs were located in the Auckland region for the June quarter, along with one-third of the working-age population.”
In the year ended March 2024, Auckland accounted for a 37.9 percent share of New Zealand’s gross domestic product (GDP).
Headline should be: Annually, unemployment rose by 16,000 people (11.1 percent).
Plus a further 8700 public servants on the way.
Lets not forget this sum does not include the thousands of people who have departed NZ seeking employment overseas.