Full-time jobs fall as wages fail to keep pace with prices
November 4, 2026
Summarised by Centrist
New Zealand lost 17,000 full-time jobs during the September quarter as more workers shifted into part-time employment and wage growth fell well behind inflation.
The unemployment rate increased for the third consecutive quarter, reaching 5.7%. Around 174,000 people were unemployed, up from rates of 5.6% in June and 5.4% in March.
Total employment remained statistically unchanged, with 2.891 million people employed compared with 2.896 million during the previous quarter. However, the headline figure concealed a change in the quality and hours of available work.
“Although employment was similar to last quarter, there were changes in how people were employed,” Stats NZ labour-market spokesperson Abby Johnston said.
The number of people working part-time increased by 15,000, while full-time employment fell by 17,000. Casual and fixed-term employment also increased over the year.
Men accounted for most of the shift, with 16,000 fewer men employed full-time and 11,000 more working part-time.
Workers’ incomes also lost ground against rising prices. The labour cost index, which tracks salary and wage rates, increased 2.1% in the year to September. Consumer prices rose 3.7% over the same period.
The figures suggest many employed New Zealanders are working fewer or less secure hours while their pay fails to keep pace with living costs.
The proportion of 15 to 24-year-olds who were not in employment, education or training increased from 13.8% to 14.1%.
The unemployment rate was 4.5% among Pākehā and 5% among Asians, compared with 10.9% for Māori and 11.5% for Pacific people.
Separate Centrix figures showed 3,173 company liquidations during the year to September, an 18% increase. Hospitality liquidations rose 41%, while retail failures increased 53%.
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