Stats NZ data indicates the unemployment rate climbed to 5.4% in the December quarter, up from 5.3% previously—the highest since March 2015.
“Over the quarter, we saw higher levels of engagement in the labour market as both employment and unemployment increased,” macroeconomic spokesperson Jason Attewell said.
Unemployment reached 165,000 people, up 4,000 from the prior quarter and 10,000 from a year earlier.
Unemployment has climbed steadily as businesses cut staff or halted hiring amid a sluggish economy, even as the workforce grew despite slower migration.
Underutilisation, encompassing the unemployed and underemployed as a gauge of jobs market slack, was at 13%, the highest since late 2020.
Employment rose by around 15,000 in the quarter—the strongest quarterly gain in two years—but the economy still trails two years ago by over 30,000 jobs.
Youth unemployment (ages 15-24) hit 16.5%, while the rate among those not in education or training dropped to 13.7%.
Auckland, Wellington, and Waikato posted the highest unemployment, near 6%, while all South Island regions stayed below 5%.