Unemployment rises to 5.1%

Wednesday, 5 February 2025

Job seekers are entering 2025 with rising unemployment.

Unemployment rate in New Zealand rose to 5.1% in December 2024, highest since September 2020.

Employment fell by 32,000 from December 2023 to December 2024, largest annual drop since 2009.

Male-dominated occupations like technicians, trades workers, and machinery operators saw significant job losses.

Unemployment has risen to 5.1% with the country experiencing the largest annual fall in employment since December 2009.

The Household Labour Force Survey shows there were 156,000 people unemployed in the three months to December 2024, up 7000 compared to the previous September quarter, when the unemployment rate was 4.8%.

'Unemployment has been increasing since late 2022,' Stats NZ's labour market spokesperson Deb Brunning said.

'The unemployment rate in the December 2024 quarter was the highest it's been since the September 2020 quarter, when it was 5.2%.'

There were 32,000 fewer in work compared to a year ago, reflecting a fall in the employment rate from 69% in December 2023 to 67.4% in December 2024.

'This was the largest annual fall in employment since the year to December 2009,' Brunning said.

'Men accounted for 85% of the annual decrease in employment, reflecting substantial falls in the male-dominated occupation groups of technicians and trades workers, and machinery operators and drivers.'

The number of technicians and trades workers fell by 22,600 in the year to December, and there were 17,000 fewer machinery operators and drivers.

However, not all sectors declined. The largest-growing occupation group was community and personal service workers, up 21,600.

The data shows more men were working part-time. While the number of men in full-time employment fell by 36,000, the number in part-time employment grew by 9,000.

There were also fewer young people engaged in work or study. The proportion of people aged 15 to 24 who were not in employment, education or training rose to 13.5%, up from 12.3% in the September quarter.

The number of young people in that defined group increased by 8000 over the quarter to 91,000.

Salaries and wages increased by 3.3% in the year to December, which is higher than consumer price inflation at 2.2%. However, the 3.3% rise is down from 3.8% in the September 2024 quarter.

The data shows public sector wages increased by 4.5% in the year to December, compared to a rise of 3% in the private sector.