Summarised by Centrist
New Zealand’s seasonally adjusted unemployment rate increased to 5.2 percent in the June 2025 quarter, up from 5.1 percent in the previous quarter and 4.7 percent a year earlier.
This represents 158,000 unemployed people, an annual rise of 16,000 or just over 11 percent.
The broader underutilisation rate, which includes unemployed, underemployed, and those marginally attached to the labour force, also rose to nearly 13 percent.
Youth employment continues to decline, with fewer young people aged 15 to 24 in work or seeking work. Instead, more young people are staying in education, with an 18,000 increase in this group over the past year.
Auckland’s unemployment rate climbed to just over 6 percent, with the region accounting for about one-third of New Zealand’s jobs and working-age population.
Wage growth slowed compared with last year, with average hourly earnings rising 4.5 percent annually to $43.39, down from 5 percent growth in the June 2024 quarter.
Labour market spokesperson Jason Attewell noted that the changes reflect evolving economic conditions and shifting participation patterns.
