Stats NZ data released today indicates that the economic downturn is disproportionately impacting New Zealand’s youth.
Data reveals that the unemployment rate for individuals aged 15-19 has surged to 23%, marking the highest level in over a decade. The said age group experienced a net loss of 17,000 jobs, which accounted for more than half of the total job losses during that year.
According to BNZ head of research Stephen Toplis, the unemployment rate in New Zealand would likely be even higher if not for the rapid decline in youth participation in the labour force.
“Youth are often the ‘marginal’ employees, so when economies soften, the youth unemployment rate tends to rise faster than that for other age groups,” he said.
“Many youth do at least have the option of returning to school or higher education to enhance their future employability. The drop in participation for this age group suggests many may be doing this.”
New Zealand’s seasonally adjusted unemployment rate rose to 5.1% in the December 2024 quarter, up from 4.8% in the previous quarter. Meanwhile, the seasonally adjusted employment rate in the country was 67.4%, a decrease from 69.0% in the December 2023 quarter.
The annual decline in the employment rate reflects a reduction of 32,000 employed individuals over the past year. Stats NZ labour market spokeswoman Deb Brunning said, “This was the largest annual fall in employment since the year to the December 2009 quarter.”
Men represented 85% of the annual decrease in employment, indicating major declines in male-dominated occupational groups, particularly among technicians and trades workers, as well as machinery operators and drivers.