New Zealand’s seasonally adjusted unemployment rate was 5.7 percent in the September 2026 quarter, according to figures released by Stats NZ today.
In the September 2026 quarter:
- the unemployment rate was 5.7 percent
- the underutilisation rate was 13.8 percent
- the employment rate was 66.4 percent
- annual wage inflation was 2.1 percent
- average ordinary time hourly earnings were $44.86.
“The unemployment rate was 5.7 percent in the September 2026 quarter, compared with 5.6 percent in the June 2026 quarter,” labour market spokesperson Abby Johnston said.
There were 174,000 unemployed people in the September 2026 quarter, as measured by the Household Labour Force Survey.
The underutilisation rate remained at 13.8 percent. There were 438,000 underutilised people in the September 2026 quarter.
Underutilisation is a broader measure of untapped labour market capacity than unemployment. It includes unemployed people, the potential labour force, and people who are underemployed.
Employment and hours worked
“In the September 2026 quarter, the level of employment remained similar to the June 2026 quarter,” Johnston said.
In the September 2026 quarter, 2,891,000 people were employed (seasonally adjusted), compared with 2,896,000 in the June 2026 quarter and 2,872,000 in the September 2025 quarter.
The employment rate was 66.4 percent in the September 2026 quarter, compared with 66.7 percent in the June 2026 quarter and 66.6 percent in the September 2025 quarter.
The employment rate is the proportion of the working-age population that is employed.
“Although employment was similar to last quarter, there were changes in how people were employed,” Johnston said.
“Casual and fixed-term roles increased over the year, while there was a shift towards part-time employment over the quarter.”
Most employed people are paid employees, and most work in permanent roles. In the September 2026 quarter, 91.3 percent of paid employees held permanent positions (not seasonally adjusted).
Over the year, the number of paid employees working in non-permanent casual or fixed-term roles grew. Casual employees increased by 19,100 (19.5 percent) to 116,900, while fixed-term employees increased by 8,100 (18.9 percent) to 50,900.
“Over the quarter, there was an increase in the proportion of people working part-time, which contributed to a decrease in both usual and actual hours worked,” Johnston said.
The seasonally adjusted number of people in part-time employment increased by 15,000, while the number of people in full-time employment decreased by 17,000.
Employed people are classified as part-time if they usually work less than 30 hours per week.
Over the September 2026 quarter, seasonally adjusted hours usually worked decreased 0.5 percent to 106.5 million, while hours actually worked decreased 1.6 percent to 94.7 million.
Labour market statistics: September 2026 quarter has more information on hours worked.
Wages
In the year to the September 2026 quarter, all salary and wage rates (including overtime), as measured by the labour cost index (LCI), increased 2.1 percent. This compares with 2.0 percent in the year to the June 2026 quarter.
Average ordinary time hourly earnings in the Quarterly Employment Survey (QES) rose 2.9 percent to $44.86 in the year to the September 2026 quarter. This compares with 2.8 percent in the year to the June 2026 quarter.