New Zealand's unemployment rate rose to 5.7 percent in the September 2026 quarter, up from 5.6 percent in the June quarter, Stats NZ said on Wednesday.
That means 174,000 people were unemployed, seasonally adjusted, 3,000 more than three months earlier. RNZ reported the rate is the highest in nearly 11 years and was above most economists' forecasts. Interest.co.nz noted the last time it was 5.7 percent was in the September 2015 quarter.
The main numbers
Stats NZ's figures for the September 2026 quarter:
- Unemployment rate: 5.7 percent (5.6 percent in June)
- Underutilisation rate: 13.8 percent, unchanged
- Employment rate: 66.4 percent (66.7 percent in June)
- People employed: 2,891,000, down from 2,896,000
- Annual wage inflation (labour cost index): 2.1 percent
- Average ordinary time hourly earnings: $44.86, up 2.9 percent on a year earlier
The underutilisation rate is a wider measure. It counts people who are unemployed, people who want more hours than they have, and people who want work but are not actively looking or not available to start straight away. Stats NZ says 438,000 people were in that group.
How Asian New Zealanders compare
Stats NZ also publishes unemployment rates by ethnic group. These figures are not seasonally adjusted. For the September quarter, the rates were:
- Pacific peoples: 11.5 percent
- Māori: 10.9 percent
- Asian: 5.0 percent
- European: 4.5 percent
The Asian rate sits below the national figure, but the "Asian" group is very broad. It covers long-settled families as well as recent migrants and international graduates, whose experience in the job market can be quite different. Stats NZ does not break this headline figure down by country of origin.
Longer job searches
The share of people out of work for a long time grew. Of the 169,100 people unemployed in the quarter (not seasonally adjusted), 21.5 percent had been unemployed for more than a year, Stats NZ said. Interest.co.nz reported that figure was 19 percent in the previous quarter, and RNZ said it is the highest share since mid-1994.
RNZ's Morning Report also spoke to older jobseekers on Thursday who said age was a barrier to finding work.
More casual and fixed-term jobs
Most workers are still in permanent roles. Stats NZ says 91.3 percent of paid employees held permanent jobs. But non-permanent work grew over the year:
- Casual employees rose by 19,100 (19.5 percent) to 116,900.
- Fixed-term employees rose by 8,100 (18.9 percent) to 50,900.
Hours also fell. Stats NZ says hours actually worked dropped 1.6 percent in the quarter to 94.7 million a week.
Where unemployment is highest
RNZ reported Northland had the highest regional rate at 8.3 percent, with Auckland, Waikato and Manawatū-Whanganui all above 6 percent. Most South Island regions were below 5 percent.
Pay is rising slowly
The labour cost index, which tracks pay rates for the same jobs over time, rose 2.1 percent over the year, close to what RNZ described as a five-year low. Average weekly earnings for full-time equivalent employees rose to $1,743 from $1,688 a year earlier.
If you are looking for work
If you have lost a job or your hours have been cut, check what support you may be able to get from Work and Income, even if you have never applied before. Eligibility depends on your residence status, income and your partner's income, so the answer can differ between households.
If you hold a work visa that is tied to an employer, losing that job can affect your visa as well as your income. Immigration New Zealand's website explains the options, and it is worth getting advice from a licensed immigration adviser before you make decisions.
We have previously written about employment support for Asian migrant jobseekers and the Jobseeker parental income test for young people.
Sources: Stats NZ, Labour market statistics: September 2026 quarter (4 November 2026); RNZ; interest.co.nz.
