Stats NZ data released today shows New Zealand’s unemployment rate increased by 0.1% to 5.4% in the final quarter of 2025 – the highest level recorded since March 2015.
The result is fractionally below the 5.5% rate forecast by the Treasury in its December Half Year Economic and Fiscal Update.
“Obviously, we would prefer the rate to be lower still but the underlying details are positive and economists are expecting the unemployment rate to fall this year as the economy recovers,” said Finance Minister, Nicola Willis.
Minister Willis said it was pleasing to see the number of young people not in education, training or employment declined from 13.7 to 13.2% in the quarter.
“Many Kiwis are still doing it tough and there is heaps to do. But all the signs are that the steps the Government has taken to fix the basics and build the future are making it easier for businesses to invest, innovate, grow and employ more people,” she said.
