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New Zealand Unemployment Eases to 5.3% in Q1 2026

New Zealand's unemployment rate eased to 5.3% in the March 2026 quarter, down from 5.4% in the previous quarter. The number of unemployed fell by 2,000 to 163,000, while the employment rate remained steady at 66.7%. However, the youth NEET rate rose to 14.4%, with young women facing higher disengagement rates. Economists warn that geopolitical tensions and rising fuel costs could slow hiring in the coming months.

Key Points: NZ Jobless Rate Falls to 5.3% in Q1 2026

  • Unemployment drops to 5.3% from 5.4%
  • 163,000 unemployed, down 2,000
  • Employment rate holds at 66.7%
  • Youth NEET rate rises to 14.4% from 13.3%
2 min read

New Zealand unemployment down to 5.3 pc in Q1

New Zealand's unemployment rate fell to 5.3% in Q1 2026 from 5.4% in Q4 2025. Employment rate steady at 66.7%, while youth NEET rate rises.

"Young women continued to face higher disengagement rates than men, with the NEET rate for women aged 20 to 24 rising 1.9 percentage points to 20.3% in the March 2026 quarter - Stats NZ spokesperson Abby Johnston"

Wellington, May 6

New Zealand's unemployment rate eased to 5.3 per cent in the March 2026 quarter from 5.4 per cent in the December 2025 quarter, Stats NZ said on Wednesday.

The statistics department reported the number of unemployed falling to 163,000 in the March 2026 quarter from 165,000 in the December 2025 quarter, with the employment rate standing at 66.7 per cent, reports Xinhua news agency.

The underutilisation rate, a broader measure of untapped labour market capacity than unemployment, remained the same at 12.9 per cent, with 406,000 underutilised people in the March 2026 quarter, the department said.

It added that the measure includes unemployed and underemployed people, as well as those in the potential labour force.

Meanwhile, annual wage inflation was 2 per cent in the March 2026 quarter, compared with a 3.1 per cent rise in the consumer price index, while average ordinary-time hourly earnings reached 44.12 NZ dollars (26.11 U.S. dollars), Stats NZ said.

The proportion of young people aged 15 to 24 not in employment, education, or training (NEET) rose to 14.4 per cent in the March 2026 quarter from 13.3 per cent in the December quarter, it said, highlighting the growing difficulty for young people entering the labour market.

Young women continued to face higher disengagement rates than men, with the NEET rate for women aged 20 to 24 rising 1.9 percentage points to 20.3 per cent in the March 2026 quarter, Stats NZ labour market spokesperson Abby Johnston was quoted as saying.

Economists warned that the Middle East conflict and rising fuel costs could dampen business sentiment, likely leading firms to pause hiring in the coming months.

- IANS

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Reader Comments

A
Ananya R
Interesting that wage growth is so low while inflation is higher. Here in Bangalore, I see similar trends—salaries not keeping up with rents and groceries. NZ's average hourly wage of 26 USD is actually quite good compared to Indian IT salaries post-conversion, though their cost of living is sky-high.
J
James A
Good news on the headline, but the rising NEET rates for young women (20.3%!) is concerning. In Canada, we see similar patterns post-pandemic. The Middle East conflict and fuel costs are a global risk—everyone needs to watch that.
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Raghav A
As someone who studied in Auckland, I recall NZ's economy is small and commodity-dependent. This 0.1% drop is marginal—could be seasonal. The underutilisation rate stuck at 12.9% shows hidden slack. And rising NEET among young Māori and Pacific women is a structural issue they haven't fixed.
S
Samantha B
Finally some good economic news from abroad! 🇳🇿 But 44 NZD per hour average wage? That's like ₹2,200 an hour—here in Mumbai even senior software engineers don't earn that much per hour. Their minimum wage is probably higher than our average salary! 😅
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Ravi K
Respectfully, 5.3% unemployment is still high by Indian comparison—our UPA period had lower rates. But the NEET issue hits home: in rural India, similar disengagement among young women is a huge problem. The Middle East conflict warning is real for us too, given oil imports.

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