Government credits its welfare reset for lifting work exits even amid a softening labour market.
More New Zealanders moved off welfare and into work over the year to March 2026, with benefit exits rising by 5,580 compared with the same period a year earlier, according to figures released by the Ministry of Social Development (MSD).
The data, released Thursday, showed 24,615 people exited a main benefit for work in the March 2026 quarter – up 1,347 from the March 2025 quarter. The number of people on a working-age main benefit also fell by 17,661, or 4.1%, from the December 2025 quarter.
Minister for Social Development and Employment Louise Upston said the results were encouraging despite a difficult economic climate.
“We’re facing tough economic conditions, both at home and internationally, but these numbers matter – they represent lives turned around for thousands of New Zealanders,” Upston said.
Upston said the number of people receiving Jobseeker Support decreased by 8,289, or 3.7%, from the December 2025 quarter.
The government attributed part of the improvement to its welfare reset policies, including the Traffic Light System introduced in mid-2024, which Upston said has made jobseekers more aware of their job search responsibilities.
MSD’s KÅrero Mahi seminars have also been cited as a key support mechanism, helping jobseekers understand their work obligations and connecting them with services such as CV assistance, job vacancy referrals, training, and case management.
“The Government’s welfare reset is shifting the dial, helping jobseekers to be work ready and proactive about seizing opportunities when they arise,” Upston said.
“Many New Zealanders are doing it tough, but our government is committed as ever to fixing the basics and building the future while supporting job and income growth and providing practical support to help get jobseekers into work.”
The results come against a backdrop of a sustained labour market downturn. New Zealand’s seasonally adjusted unemployment rate rose to 5.4% in the December 2025 quarter – the highest jobless rate since September 2015 – as the number of unemployed individuals reached 165,000. Treasury’s Half-Year Economic and Fiscal Update, released in December, had forecast unemployment to peak at 5.5% across the December 2025 and March 2026 quarters, with sluggish demand cited as the primary driver of higher unemployment and slower wage growth.
