Young workers experience sharper setbacks as unemployment rises across age groups
New Zealand’s unemployment rate rose to 5.3% in the September 2025 quarter, up from 5.2% in the previous quarter, according to the latest Statistics NZ data released.
The seasonally adjusted figures showed 160,000 people were unemployed in the September quarter, compared with 148,000 in the same period a year earlier. The employment rate declined to 66.6% from 66.8% in the June quarter, while the labour force participation rate slipped to 70.3% from 70.5%.
“The seasonally adjusted number of employed people was 2,873,000, compared with 2,891,000 in the September 2024 quarter,” Statistics NZ reported.
The unemployment rate for men increased to 5.2% from 5.0% in the previous quarter, while the rate for women edged down to 5.4% from 5.5%.
Two regions recorded notable increases over the year. Auckland’s unemployment rate climbed to 6.1% from 5.2%, while the Gisborne/Hawke’s Bay region saw its rate rise to 5.9% from 3.4%.
Young workers continued to face difficult conditions. The unemployment rate for people aged 15–24 rose to 15.2% from 13.1% a year earlier, while the rate for those aged 25–34 increased to 5.2% from 4.0%. The proportion of youth aged 15–24 not in employment, education, or training reached 13.8%, up from 12.9% in the June quarter.
Māori unemployment stood at 10.5%, compared with 9.3% a year earlier, while Pacific peoples’ unemployment was 12.1%, up from 10.0%. Statistics NZ noted these changes were not statistically significant.
The underutilisation rate, which reflects broader labour market slack including underemployment, reached 12.9%, up slightly from 12.8% in the previous quarter. The total number of underutilised people rose to 406,000, made up of 224,000 women and 182,000 men.
Wage growth continued but remained below inflation. All salary and wage rates rose 2.1% in the year ended September 2025, according to the labour cost index. Average ordinary time hourly earnings increased 3.9% to $43.60, while average weekly earnings for full-time equivalent employees grew 4.1% to $1,688. These gains lagged behind the 3.0% annual inflation rate over the same period.
The working-age population grew 0.9% over the year to 4.314 million people, while 1.281 million people were not in the labour force in the September quarter.
