Higher unemployment could continue to be a handbrake on the country's economic recovery. 

More Kiwis are out of work, with unemployment now at a five-year high. 

And Kiwis that are working are earning less, with wages not keeping up with inflation over the past 12 months. 

Retail NZ Chief Executive Carolyn Young told Ryan Bridge that's having ripple effects. 

She says if consumers are earning less, they spend less, and if they're anxious about their job security, they tend to reduce their discretionary spending. 

LISTEN ABOVE