New Zealand’s unemployment rate remained elevated at 5.3% in the March 2026 quarter, signalling continued pressure in the labour market despite a slight improvement from the previous quarter, according to Stats NZ.
The latest data showed the unemployment rate edged down from 5.4% in the December 2025 quarter, while underutilisation stayed unchanged at 12.9%. The figures reflect a labour market still grappling with weak demand and softer hiring conditions.
The report also highlighted growing concerns around youth disengagement. The NEET rate, which measures young people aged 15 to 24 not in employment, education, or training, rose to 14.4% from 13.3% in the previous quarter. Women aged 20 to 24 recorded the highest NEET rate at 20.3%.
There were 163,000 unemployed people in the March 2026 quarter, slightly lower than 165,000 in the December 2025 quarter. Meanwhile, 406,000 people were classified as underutilised. The employment rate stood at 66.7%, annual wage inflation slowed to 2.0%, and average ordinary time hourly earnings reached NZ$44.12.
“The unemployment rate was 5.3 percent in the March 2026 quarter, compared with 5.4 percent in the December 2025 quarter,” labour market spokesperson Abby Johnston said.
“Women aged 20 to 24 continue to have the highest NEET rate, rising 1.9 percentage points to 20.3 percent in the March 2026 quarter,” Johnston said.
Economists are expected to closely watch upcoming labour market and inflation data for signs of whether employment conditions stabilise in the second half of 2026, particularly as concerns grow around youth participation and wage growth.