Unemployment rate rises to 5.7%

New Zealand’s unemployment rate has risen to 5.7% in the September 2026 quarter, according to figures released by Stats NZ today, out of line with economists’ expectations.

Forecasts were for the unemployment rate to be 5.4% or 5.5%.

For men, the unemployment rate was unchanged at 5.6%, while the rate for women rose from 5.5% to 5.7%.

The seasonally adjusted number of unemployed people was 174,000, compared with 171,000 in the June 2026 quarter.

That’s equivalent to the population of Hamilton, according to the most recent census.

Stats NZ labour market spokesperson Abby Johnston said employment remained similar to the June 2026 quarter.

“Although employment was similar to last quarter, there were changes in how people were employed,” Johnston said.

“Casual and fixed-term roles increased over the year, while there was a shift towards part-time employment over the quarter.”

The underutilisation rate, a broader measure of untapped labour market capacity than unemployment, was unchanged at 13.8%.

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

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

In the September 2026 quarter, the seasonally adjusted proportion of people aged 15 to 24 years who were not in employment, education, or training (NEET) was 14.1%, compared with 13.8% last quarter.

More to come.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.