New Zealand’s unemployment rate increased to 5.4% in the December 2025 quarter, the highest since September 2015 when it was 5.7%. The number of unemployed individuals rose by 5,000 to 165,000 during the quarter, while both employment and labor market participation saw an increase, according to Stats NZ.
The labor force participation rate climbed to 70.5%, with 19,000 more individuals actively engaged in the job market. Stats NZ’s macroeconomic spokesperson, Jason Attewell, noted a rise in both employment and unemployment levels, indicating higher labor market engagement.
Moreover, about 20,000 more women entered the labor force, with 16,000 securing employment compared to the previous quarter. Female employment saw growth, especially in managerial and professional roles, while clerical and administrative positions declined, as per Stats NZ data.
The employment rate stood at 66.7%, underutilization rate at 13%, annual wage inflation at 2%, and average hourly earnings at 43.99 New Zealand dollars (26.59 U.S. dollars) in the December 2025 quarter. Additionally, household living costs in New Zealand rose by 2.2% in the year leading up to December 2025, according to Stats NZ.
On February 2, Stats NZ reported that the average New Zealand household’s living expenses increased by 2.2% in the year ending December 2025. Household living costs price indexes (HLPIs) have been moderating since their peak in 2022, dropping to levels last observed in June 2021, the statistics department stated. The consumer price index (CPI) rose by 3.1% during the same period, reflecting broader inflation trends.
