Finance Minister Nicola Willis says rising unemployment is the result of a period of out-of-control inflation, rapidly rising interest rates and stagnant growth.
The latest data released this week by Stats NZ shows the number of jobless Kiwis has risen to 5.2 per cent of the working-age population, or 158,000 people.
It was 5.1 per cent in the March, 2025, quarter and 4.7 per cent in the June, 2024, quarter.
Willis says: “Rising unemployment is tough on every New Zealander impacted and is the unfortunate after-effect of a historic period of out-of-control inflation, rapidly rising interest rates and stagnant growth.
“Our Government has worked hard to restore responsible economic management but Treasury, in its pre-election fiscal update, made clear unemployment would peak in the middle of this year.
“It’s of note, however, that today’s data confirms 8000 fewer unemployed people than Treasury forecast would be the case in its pre-election update.
“Our Government remains focused on rebuilding the economy to deliver more and better paying jobs.
“A recovery is now under way with inflation back under control, interest rates falling and healthy rates of growth in the first three months of the year.”
The Labour Party says rising unemployment is “clear proof” the coalition Government is “failing New Zealanders”.
“[Prime Minister] Christopher Luxon promised his business experience would make life better for New Zealanders – instead he’s making it worse,” Labour finance and economy spokesperson Barbara Edmonds says.
“The Government’s decision to cancel or delay building projects has contributed to a loss of 18,000 construction jobs since December, 2023.
“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 these figures don’t even include the thousands of Kiwis who have left for Australia to find work that should be available here.
“Kiwis are voting with their feet and leaving in record numbers. That is a clear vote of no confidence in National.”
And the Green Party says the new unemployment figures are “further proof the Government’s policies are forcing people further into hardship and poverty”.
“The Government should take ownership for its decision to cut thousands of jobs, and then punish the unemployed,” Green Party employment and social development spokesperson Ricardo Menéndez March says.
“Instead of sanctioning people for being unemployed when there is no work, we can build a workforce with good jobs that support the common good.
“We need to take a more hands-on approach when it comes to our economy and the organisation of our workforce.
“We can give people meaningful jobs that help us confront some of our biggest challenges by taking more control.
“Instead, this Government has deliberately increased unemployment.”
