New data from Stats NZ shows the unemployment rate has risen to 5.7%, up from 5.6% in the previous quarter. This marks the highest level in nearly 11 years, with about 174,000 people now unemployed, a rise of 3,000 from the last quarter and 14,000 more than a year ago. The economy shed around 4,000 jobs in the quarter, while the labour force shrank slightly by 1,000, though it remains up 34,000 compared to a year ago.
The underutilisation rate, which includes both unemployed and under-employed workers, held steady at a 12-year high of 13.8%. Long-term unemployment also increased, with those out of work for a year or more now making up 21.5% of the total unemployed, a level not seen since mid-1994. Youth unemployment (ages 15 to 24) rose to 14.1% from 13.8%.
Labour market spokesperson Abby Johnston noted shifts in employment types, with casual and fixed-term roles increasing by nearly 20% over the year. Part-time employment also saw a rise over the quarter. The participation rate fell slightly, while the working-age population grew. The number of hours worked dropped, possibly due to more people taking holidays.
Wage growth remained weak, with annual growth at 2.1%, near a five-year low. However, average weekly earnings rose by 3.3% annually, though this was still below the 3.7% inflation rate. The Reserve Bank of New Zealand (RBNZ) has indicated that subdued wage growth is necessary to ease inflation pressures.