Stats NZ’s latest figures show New Zealand’s unemployment rate remained steady at 5.1% in the March 2025 quarter, unchanged from the previous quarter.
This actual employment rate came slightly below what’s expected. In February, the Reserve Bank had predicted the unemployment rate would increase to 5.2% in the March quarter. Likewise, economists from various banks had expected the rate to range between 5.2% and 5.3% prior to the recent data release.
EMA (Employers and Manufacturers Association) Head of Advocacy Alan McDonald said that “While it’s positive that the unemployment rate has not increased, we’re still seeing pressures on employers, with calls into our AdviceLine service on redundancies and restructures remaining at very high levels.“
Unemployment, according to McDonald, typically lags behind other signs of economic trouble, and although it’s still too soon to say the negative trends are over, it’s reassuring that the unemployment figure remained steady instead of rising, which many had anticipated.
Another concern is the persistently high number of NEETs – young people who are not engaged in employment, education, or training.
“This indicates that employers are overlooking that category in favour of people who already have some work experience, which is another symptom of current labour market conditions,” McDonald said.
Additionally, while a high minimum wage doesn’t necessarily prevent employers from hiring, McDonald said it does influence the kinds of skills and experience they prioritise when considering potential employees.