Unemployment hits 8-year high leaving 160,000 Kiwis out of work
The unemployment rate hit 5.3% in the September 2025 quarter, according to figures released by Stats NZ today.
That is the highest rate since December 2016 (up from 5.2%).
There were 160,000 unemployed people in the September 2025 quarter, as measured by the Household Labour Force Survey.
The increase is in line with what economists had expected.
Despite the grim numbers economists said there were promising signs in today’s data.
The figures below the topline confirmed “signs of stabilisation”, said ASB senior economist Mark Smith.
The majority of economists had forecast the topline unemployment rate to land at 5.3% (up from 5.2% in the June quarter).
“Labour market conditions look to be stabilising,” he said. “The worst is behind us, but we don’t expect to see a meaningful lift in employment until 2026.”
“Chunky increases in hours worked and rising full-time employment and QES filled jobs/paid hours point to strengthening employment demand.”
Westpac senior economist Michael Gordon said the September quarter data was subdued as expected.
Gordon also pointed to the 0.9% rise in the hours worked in the Household Labour Force Survey - the first quarterly increase since December 2023.
“Average hours worked had fallen markedly over the last year or so, implying that employers were adjusting to the soft economy by reducing hours rather than laying off workers; the latest quarterly result suggests that this trend is reversing.”
Gordon said the September quarter results were in line with the Reserve Bank’s forecasts offering little for markets to chew on ahead of the next Monetary Policy Statement on November 26.
“There are some early signs of the economy stabilising, but the existing degree of spare capacity will give the RBNZ confidence that inflation will moderate back towards the 2% target midpoint next year,” he said.
“We continue to expect a 25bp cut in November.”
The unemployment rate for young people experienced a significant increase over the year, Stats NZ said.
The unemployment rate in the 15–24 age group increased to 15.2%, from 13.1% a year earlier.
The proportion of youth aged 15 to 24 years not in employment, education, or training (NEET) rose to 13.8% in the September 2025 quarter, up 1.4 percentage points annually.
The NEET rate gives a more detailed picture of labour market engagement for young people, Stats NZ said.
The underutilisation rate was 12.9% in the September 2025 quarter, compared with 12.8% in the June 2025 quarter.
Underutilisation includes unemployed and underemployed people, along with the potential labour force.
It measures those who have some work but say they need more.
There were 138,000 underemployed people in the labour force in the September 2025 quarter, compared with 121,000 in the September 2024 quarter, Stats NZ said.
Underemployment is defined as part-time workers who have both the desire and availability to work more hours.
“Around two-thirds of those underemployed in the September 2025 quarter were women, reflecting the higher number of women who work part-time,” Attewell said.
While underemployment predominantly affects women, men working part-time were more likely to be underemployed.
Approximately one in four men working part-time were underemployed, compared with one in five women working part-time
The employment rate was 66.6% in the September 2025 quarter, compared with 66.8% in the June 2025 quarter.
In the September 2025 quarter, the number of employed people was 2,873,000, compared with 2,891,000 in the September 2024 quarter.
“Better signs are ahead,” said ASB’s Smith.
“The unfolding economic recovery should see excess labour capacity gradually erode with the unemployment rate moving towards the 4% to 4.5% Goldilocks zone by the end of next year.”
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Christmas gifts stolen from parked car prompts warning over holiday break-ins
An Auckland man whose Christmas presents were stolen from his car on a quiet street is warning others not to repeat his mistake.
Police and the AA say opportunistic thieves are breaking into cars more frequently during the Christmas period.
Jeremy Rees, an RNZ staff member in Auckland, had packed his car full of gifts when he decided to visit a friend.
“Everyone had handed over presents and we had a couple of bags full of presents sitting in the back of the car,” he said.
“I decided it would be great to go around and see a friend, drop off some presents and say hello. My wife said to me, ‘Are you sure we should be taking this car?’ I said, ‘I’m sure it’ll be fine’.
“I think it was only 20 minutes outside their house, a very quiet street. It was light [outside]. We came out and my wife pointed out that someone had smashed the rear window, reached in and grabbed the presents, and headed away.
“It was a shock. It was a shock partly because of the Christmas presents and partly because my wife had been telling me, ‘Don’t do that’.”
AA Insurance head of motor claims Beau Paparoa said roadside staff were responding to smashed windows more often.
“We definitely see car break-ins starting to occur a lot more around this time of year. We’re often hearing from customers and some of our roadside teams that there’s definitely a bit more opportunistic theft happening,” he said.
“We’re putting that down to it being a busy time of year. Everyone’s out doing their Christmas shopping and there’s much more presence of gifts and valuables being visible in the car.”
He encouraged people to be careful and make sure valuables were hidden from view.
“In terms of any valuables, if you’ve done some Christmas shopping, or if generally you’ve got valuables in your car, try [to] keep them locked away or out of sight – in your boot if you can,” he said.
“Where you’re parking is possibly a good thing to think about. If you can afford to, don’t park on the street, but if you have to park on-street, make sure you park in well-lit areas.”
Police said it was not uncommon for Christmas presents to be stolen.
“The key is to remove any opportunity. This includes taking valuables or documents out of vehicles wherever possible,” a spokesperson said.
Rees said he wished he had followed that advice.
“I feel a bit stupid, to be absolutely honest. I read all of the things from police saying ‘don’t do this, don’t pack your car, don’t just leave it on the street’, and I did exactly the opposite and I paid the price.”
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Auckland Harbour Bridge summer works
NZ Transport Agency Waka Kotahi is carrying out essential maintenance on the Auckland Harbour Bridge this December and January. The southbound clip-on lanes will be closed (24/7) from 26 December to 5 January for road resurfacing. Night-time lane restrictions will be in place throughout the summer for recoating work on the bridge. Traffic will still be able to travel in both directions at all times.
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