Stats NZ data indicated that the unemployment rate increased to 5.3% in the three months ending September, up from 5.2% in the prior quarter.
Unemployment has gradually increased as businesses either laid off employees or halted hiring due to the weak economy, even though the workforce has grown despite a decline in migration.
The total number of unemployed reached 160,000, marking the highest level since early 1994.
The number of people unemployed for over a year stood at 22,700, representing 14.5%.
Meanwhile, the underutilisation rate, which includes the unemployed and underemployed and reflects slack in the job market, increased to 12.9% from 12.8%, reaching its highest level since late 2020.
The unemployment rate for young people aged 15 to 24 was 15.2%, while the overall proportion not engaged in education or training increased to 13.8%.
The regions experiencing the highest unemployment rates were Northland, Auckland, and Waikato, each exceeding 6%, while all South Island regions had rates below 5%.
Analysts anticipated the 5.3% unemployment rate. The data closely matched Reserve Bank projections and is expected to back an additional 25 basis point reduction in the official cash rate to 2.25% later this month.