Unemployment rate rises to 5.7 percent in September quarter

New Zealand's unemployment rate rose to 5.7% in the September 2026 quarter, marking the third consecutive rise. This figure, representing 174,000 people, was higher than economist forecasts of 5.4% or 5.5%. The rate is the highest level seen in nearly 11 years.

The number of employed people fell by approximately 4,000 during the quarter. While the total number of people in work remained similar to the June quarter, there was a shift in employment types. Part-time employment increased by 15,000 people, while full-time roles decreased by 17,000.

The underutilisation rate remained steady at 13.8%, which is a 12-year high. Long-term unemployment, involving those out of work for a year or more, rose to 21.5% of the total, the highest level since mid-1994. Additionally, the proportion of 15 to 24-year-olds not in employment, education, or training rose to 14.1%.

Wage growth has struggled to keep pace with inflation. The labour cost index increased by 2.1% in the year to September, while consumer price inflation was 3.7%. An alternative measure showed take-home pay rose 3.3% annually.

Where reports differ

• One report estimated the number of employed people fell by 4,000 in the quarter, while another stated the change from the previous quarter was not significant

Compiled from reports by Stuff, NZ Herald, Otago Daily Times and 1News.