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November 05, 2025
Unemployment Crisis Deepens As Costs Soar And Government Stalls
Atereano Mateariki
Posted On November 5, 2025
Download AudioNew Zealand’s unemployment crisis is deepening amid rising household costs and government inaction, warns the New Zealand Council of Trade Unions.
Stats NZ’s latest quarterly figures show 160,000 people are out of work, keeping the unemployment rate steady at 5.3%, while incomes grew by just 2.1%.
Māori unemployment makes up nearly a quarter of the total, with more than 10% of the Māori workforce jobless.
Economist Craig Renney says low and middle-income families are bearing the brunt as essential costs soar well above wage growth.
“It’s the household basics – electricity prices are up 11.4%, food prices up over 5%, and essentials like bread have skyrocketed. For low-income households, inflation is running much higher than for anyone else, and their costs are getting worse every day,” says Renney.
With more Kiwis out of work and unable to make ends meet, Renney points to a sharp rise in hardship applications and benefit claims.
“We see increased demand for hardship withdrawals from KiwiSaver… the number of children living in poverty is rising. We see increased demand for main benefits and for special needs grants… low-income households are getting hit twice in the pocket,” says Renney.
The CTU is urging the government to lift the living wage and invest in job creation, warning unemployment and hardship will worsen without urgent action.
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