Wellington, Feb 4 (IANS) New Zealand’s unemployment rate rose to 5.4 per cent in the December 2025 quarter, the highest since the September 2015 quarter when it was 5.7 per cent, Stats NZ reported Wednesday.
The unemployment rate of 5.4 per cent was up from 5.3 per cent in the previous quarter, said the statistics department, Xinhua News Agency reported.
The number of unemployed people rose by 5,000 to 165,000 over the quarter, while both employment and participation in the labour market increased, Stats NZ said.
The labour force participation rate rose to 70.5 per cent, with 19,000 more people active in the job market over the quarter, it said.
“We saw higher levels of engagement in the labour market as both employment and unemployment increased,” said Stats NZ macroeconomic spokesperson Jason Attewell.
About 20,000 more women joined the labour force, with 16,000 gaining employment compared with the previous quarter, statistics showed.
Female employment rose particularly in managerial and professional roles, while clerical and administrative positions declined, Stats NZ said.
Overall, the employment rate stood at 66.7 per cent, the underutilization rate at 13 per cent, annual wage inflation at 2 per cent, and average hourly earnings at 43.99 New Zealand dollars (26.59 U.S. dollars) in the December 2025 quarter, it said.
On February 2, Stats NZ said the average New Zealand household’s living costs rose 2.2 per cent in the year to December 2025.
Household living costs price indexes (HLPIs), which measured the increase and how inflation affects New Zealand households, have continued to moderate since peaking at 8.2 per cent in 2022, returning to levels last seen in June 2021, said the statistics department.
The consumer price index (CPI), a broader gauge of inflation, rose 3.1 per cent over the same period, statistics showed.
“Interest payments fell 17.3 per cent for the average household over the past year, while the cost of building a new home increased 1.2 per cent over the same period,” Stats NZ prices and deflators spokesperson Nicola Growden said.
HLPIs include interest payments, such as mortgage, credit cards, and other interest, while the CPI includes the cost of building a new home.
Super annuitant households experienced the highest inflation rate at 3.8 per cent, driven by higher local authority rates, electricity prices, and health insurance, Stats NZ said.
By contrast, the highest-spending households recorded the lowest inflation rate at 0.8 per cent, reflecting an 18.6 per cent drop in mortgage interest payments, it said.
Rent rose 1.9 per cent over the year and remained the main contributor to higher living costs for beneficiary and Maori households, statistics showed.
–IANS
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