New Zealand’s unemployment rate decreased to 5.3% in the March 2026 quarter from 5.4% in December 2025, according to Stats NZ. The number of unemployed individuals fell to 163,000 in March 2026 from 165,000 in December 2025. The employment rate stood at 66.7%.
The underutilisation rate, which includes unemployed and underemployed individuals, remained steady at 12.9% in the March 2026 quarter. This rate accounts for 406,000 underutilised people, as reported by the department.
Annual wage inflation was at 2% in the March 2026 quarter, lower than the 3.1% increase in the consumer price index. Average ordinary-time hourly earnings reached 44.12 NZ dollars (26.11 U.S. dollars), according to Stats NZ.
The proportion of young people aged 15 to 24 not in employment, education, or training (NEET) rose to 14.4% in the March 2026 quarter from 13.3% in December. Young women faced higher disengagement rates, with the NEET rate for women aged 20 to 24 increasing to 20.3% in March 2026.
Economists cautioned that the Middle East conflict and escalating fuel costs might impact business sentiment, potentially causing firms to pause hiring in the upcoming months.
