New Zealand’s unemployment rate climbed to 5.2 percent in the second quarter of 2025, marking a continued softening of the country’s labor market, the statistics department Stats NZ said on Wednesday.
The unemployment rate rose from 5.1 percent in March and 4.7 percent a year ago, with the number of jobless reaching 158,000 in June 2025, up 16,000, or 11 percent, from last year, Stats NZ reported.
Labor market conditions have shifted notably over the past few years, with the unemployment rate rising 1.9 percentage points since June 2022, said Stats NZ Labor Market Spokesperson Jason Attewell.
The underutilization rate, a broader gauge of slack in the labor force including unemployed, underemployed, and potential workers, rose to 12.8 percent in the June 2025 quarter, up from 12.4 percent in the March 2025 quarter and 11.9 percent a year ago, statistics show.
Wage growth continued but slowed, with annual wage inflation falling to 2.4 percent from 4.3 percent last year and average hourly earnings rising 4.5 percent to 43.39 NZ dollars (25.66 U.S. dollars), down from a 5 percent increase a year earlier, Attewell said.
More young New Zealanders are staying in education as the job market weakens, with enrolment among 15- to 24-year-olds rising 5 percent to 379,900, statistics show.
Youth employment and participation rates dropped to 53.1 and 62.3 percent, but the NEET (not in employment, education, or training) rate remained steady at 12.2 percent, according to Stats NZ.
