New Zealand’s unemployment rate rose to 5.4% in the December 2025 quarter, up from 5.3% in the previous quarter, according to Stats NZ figures released today.

There are now 165,000 unemployed New Zealanders, up 5000 from the September quarter.

Economists had forecast the rate to have peaked and hold steady at 5.3%, or even fall slightly.

The unemployment rate was now the highest since the September 2015 quarter, when it was 5.7%, Stats NZ macroeconomic spokesperson Jason Attewell said.

“Over the quarter, we saw higher levels of engagement in the labour market as both employment and unemployment increased.”

Auckland’s unemployment rate is now 6.4%, and Wellington is at 5.8%.

The employment rate was 66.7% in the December 2025 quarter, compared with 66.6% in the September 2025 quarter.

The labour force participation rate was 70.5% in the December 2025 quarter, compared with 70.3% in the previous quarter.

Labour force participation indicates the proportion of working-age people who are engaged in the labour market through employment or unemployment.

The labour force increased by 19,000 over the quarter, as the working-age population rose by 14,000 and the number of people not in the labour force declined by 6,000.

Compared with the September 2025 quarter, 20,000 more women were in the labour force – 16,000 more employed and 4,000 more unemployed.

The underutilisation rate was 13% in the December 2025 quarter, unchanged from the September 2025 quarter.

Underutilisation is a broad measure of untapped labour market capacity that includes unemployed and underemployed people, along with the potential labour force.

More to come

Liam Dann is business editor-at-large for the NZ Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.