The unemployment rate is down, from 6 percent to 5.3 percent in the December Quarter.

The results from Statistics New Zealand came as a surprise to many analysts, who has predicted a rise for the fifth quarter in a row.

Prime Minister John Key says he prefers to look at other indicators anyway.

"Hiring intentions are very strong at the moment, we've seen that indication that employers are wanting to take on more staff," he said. "The economy is creating jobs at quite a rapid rate."