Unemployment rate hits 5.6% - worse than expectations

Author: Liam Dann,
Publish Date: Wed, 5 Aug 2026, 10:53am

New Zealand’s unemployment rate was 5.6% in the June 2026 quarter, according to figures released by Stats NZ today.

That was worse than economist expectations.

Forecasts were for the unemployment rate to land at 5.4% or 5.5%

“The unemployment rate was 5.6% in the June 2026 quarter, compared with 5.4% in the March 2026 quarter,” labour market spokesperson Abby Johnston said.

That is the highest unemployment rate since September 2015.

Of the 166,500 people who were unemployed in the June 2026 quarter (not seasonally adjusted), 19% had been unemployed for more than a year. Being unemployed for over a year is one measure of long-term unemployment.

“Around 8000 more people were experiencing long-term unemployment in the June 2026 quarter than in the same quarter in 2025,” Johnston said.

On a regional basis, the unemployment rate was highest in Northland at 8.8%, up from 5.1%, followed by Auckland at 6.5%. The areas with the lowest unemployment rate were Otago and Canterbury at 3.6%.

“The seasonally adjusted underutilisation rate was 13.8% in the June 2026 quarter, up from 12.9% in the March 2026 quarter,” Johnston said.

Underutilisation is a broader measure of untapped labour market capacity than unemployment.

It includes unemployed people, the potential labour force, and people who are underemployed.

The underutilisation rate reached its highest level since December 2013, when it reached 14%.

Meanwhile, the youth unemployment rate for those aged 15-19 grew to 25.3%, more than double that of any other age group.

The next highest unemployment rate was for those aged 20-24 at 12%.

- More to come

Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.