#economy: Jobs Crisis Bites Hardest: Māori and Rangatahi Carry the Weight of Economic Slowdown
New Zealand’s weakening labour market is hitting Māori, rangatahi and regional communities particularly hard, with economist Matt Roskruge joining Waatea to examine what rising unemployment says about the state of the economy and what needs to happen next. The national unemployment rate climbed to 5.6 percent in the June quarter, its highest level in more…
New Zealand’s weakening labour market is hitting Māori, rangatahi and regional communities particularly hard, with economist Matt Roskruge joining Waatea to examine what rising unemployment says about the state of the economy and what needs to happen next.
The national unemployment rate climbed to 5.6 percent in the June quarter, its highest level in more than a decade. Around 171,000 people are now unemployed, an increase of about 8,000 over the quarter.
But the headline number masks a much sharper impact on Māori.
Māori unemployment reached 10.8 percent, almost twice the national rate, while Pacific unemployment stood at 11.6 percent. Māori underutilisation, which also captures people wanting more work or available for work, reached 22.8 percent.
Rangatahi are also bearing a disproportionate share of the downturn.
The number of unemployed 15 to 24-year-olds increased by 19.5 percent over the year to June, representing another 12,200 young people without work. There were also more than 180,000 young people aged 15 to 24 classified as underutilised.
For young people attempting to enter the workforce, a slowing economy can create a particularly difficult cycle.
When businesses stop expanding and hiring slows, employers can become more selective. Experienced workers compete for positions further down the employment ladder, while school leavers, graduates and rangatahi looking for their first job can struggle to get the experience employers demand.
The Reserve Bank had already warned that reduced economic activity was lowering demand for workers, with compressed business margins and slower hiring contributing to higher unemployment.
The regional picture is equally concerning.
Te Tai Tokerau recorded the country’s highest regional unemployment rate at 8.8 percent, up sharply from 5.1 percent in the previous quarter. The increase comes amid significant employment disruption, including timber mill closures and pressure on industries important to the Northland economy.
For whānau, unemployment is much more than an economic statistic.
Losing a job or being unable to find enough hours can quickly flow through to rent or mortgage payments, grocery budgets, power bills and the ability to participate in whānau and community life.
For rangatahi, extended periods without work can also mean missing the critical first steps of a career — gaining skills, workplace relationships, qualifications and the employment history needed to move into better-paid jobs.
That puts greater focus on whether Aotearoa has enough pathways connecting young people with apprenticeships, vocational education, kaupapa Māori employment programmes and employers prepared to give first-time workers an opportunity.
Roskruge’s previous economic analysis has highlighted the particular vulnerability of Māori workers because of their representation in industries sensitive to economic cycles, including forestry, construction, manufacturing, tourism and agriculture.
But the Māori economy also represents part of the potential solution.
Iwi, Māori businesses, regional enterprises and kaupapa Māori organisations have an increasingly significant role in creating employment and developing training pathways that connect rangatahi with opportunities in their own rohe.
With Election 2026 underway, unemployment is now becoming another major test for political parties.
The argument will not simply be about when economic growth returns.
For Māori communities, the bigger question is whether that recovery produces sustainable jobs in the regions, creates genuine pathways for rangatahi and ensures Māori are among the first to benefit from an improving economy rather than the last.
