New Zealand’s unemployment rate has hit 5.1% in the December 2024 quarter — the highest it’s been in four years, according to Stats NZ. The rate has crept up from 4.8% in the previous quarter, continuing a trend that started back in late 2022.
Stats NZ spokesperson Deb Brunning said, “The Decem
ber 2024 quarter saw the highest unemployment rate since September 2020, when it was at 5.2%.”
Adding to the concern, the job market experienced its largest annual drop in employment since 2009, with 32,000 fewer people employed over the past year. The employment rate also fell to 67.4%, down from 69.0% a year earlier.
Men Hit Harder by Job Losses
Brunning noted that men accounted for 85% of the annual decline in employment. “We’ve seen substantial job losses in male-dominated roles like technicians, trades, and machinery operators,” she explained.
Interestingly, many men transitioned from full-time to part-time work. Full-time employment for men fell by 36,000, while part-time roles grew by 9,000. Women saw a smaller impact, with 5,000 fewer full-time roles but no significant change in part-time employment.
Political Reactions
Finance Minister Nicola Willis acknowledged the human impact of these job losses, attributing the situation to what she described as “the lingering effects of economic mismanagement by the previous government.”
“I truly feel for those who have lost their jobs or are struggling to find work,” Willis said. “While inflation is now under control and interest rates are coming down, we expect unemployment to decrease this year as the economy recovers.”
She also highlighted some positive news: wages are rising faster than inflation, which could eventually ease cost-of-living pressures for households.
On the other hand, Labour’s finance spokesperson Barbara Edmonds had a different take. She criticized the current government’s approach, blaming funding cuts for frontline services and public sector job losses.
“Christopher Luxon’s coalition of chaos is pushing New Zealand deeper into recession,” Edmonds claimed. “Their cuts have devastated the job market.”
