In brief
In the September 2026 quarter, New Zealand’s unemployment rate rose to 5.7 % from 5.6 % in the June quarter, official data from Stats NZ show. Employment remained roughly unchanged, with a shift toward casual, fixed‑term, and part‑time jobs. Annual wage inflation reached 2.1 % and hourly earnings increased by 2.9 % to $44.86 NZD.
Wellington, Nov. 4 – New Zealand’s unemployment rate rose to 5.7 percent in the September 2026 quarter, unchanged from the broader under‑utilization rate of 13.8 percent, the national statistics agency, Stats NZ, said on Wednesday.
The agency reported that 174,000 people were unemployed in the September quarter, compared with 168,000 in the June quarter, a rise that pushed the official rate from 5.6 % to 5.7 %.
Employment numbers remained broadly stable, with 2.891 million people employed in the September quarter, a decline of 5,000 from 2.896 million in the June quarter, Stats NZ noted.
The employment rate fell to 66.4 percent from 66.7 percent, the agency said, reflecting the steady but slight drop in full‑time positions.
Stats NZ labour‑market spokesperson Abby Johnston said casual and fixed‑term roles had increased over the year while part‑time employment grew over the quarter.
Over the year, casual employees rose 19.5 percent to 116,900, while fixed‑term employees increased 18.9 percent to 50,900, according to the statistics.
Full‑time employment fell by 17,000 people while part‑time employment grew by 15,000 during the September quarter, the report added.
The agency also noted that annual wage inflation was 2.1 percent in the September quarter, with average ordinary‑time hourly earnings up 2.9 percent over the year to 44.86 NZ dollars ($25.07 US dollars).
In qualitative terms, Stats NZ highlighted that the shift to a more flexible labour market is part of a broader trend in the New Zealand economy.
Industry experts suggest that the rise in casual and part‑time employment may partly reflect growing demand for flexible scheduling among workers and employers’ efforts to manage costs.
Conversely, some economists warn that a rise in labor market informality can signal weaker job security for individuals and may impact savings and retirement plans.
Meanwhile, the government has announced a series of initiatives aimed at boosting job creation in high‑growth sectors such as technology and green energy.
The new initiatives, which include tax incentives for SMEs and investment in digital infrastructure, aim to offset the impacts of labor market changes and keep unemployment below 5 percent in the long term.
Regional disparities remain, however, with Māori and Pacific communities experiencing higher unemployment rates than the national average, an issue the Ministry of Business, Innovation and Employment is set to address.
The Ministry of Employment and Employment Relations is launching targeted training programs to improve job placement rates for historically disadvantaged groups.
Further highlights from the agency’s release included a breakdown of employment by sector, showing that tourism, health and education were the largest employers but also demonstrated a decline in full‑time hours.
Information technology and construction remained robust, with both sectors adding 2 percent and 1.5 percent, respectively, to employment numbers.
Overall, the new data underscore a nuanced picture of New Zealand’s labour market: a slight uptick in unemployment balanced by a steady employment base and an increasing tilt toward casual work.
As the Ministry investigates steps to support more stable employment conditions, this quarter’s figures will serve as a benchmark for the performance of upcoming policy measures.