A new report from the New Zealand Council of Trade Unions Te Kauae Kaimahi is warning of a dramatic deterioration in Aotearoa’s labour market, with Māori, Pacific peoples and rangatahi among those carrying the heaviest burden.
The NZCTU report says unemployment has risen from 3.7 percent in June 2023 to 5.6 percent in June 2026, with around 171,000 New Zealanders now unemployed. The latest headline figures are confirmed by Stats NZ, which also recorded an underutilisation rate of 13.8 percent in the June quarter.
NZCTU President Sandra Grey says the impact goes far beyond headline unemployment. The union body’s analysis says long-term unemployment has risen sharply over the past three years, while around 440,000 people are now underutilised — including people without work and those who want or are available for more hours.
Of particular concern is the impact on Māori and Pacific communities. NZCTU says Māori unemployment has climbed from 6.5 percent in 2023 to 11 percent, while unemployment among Pacific peoples has doubled from 6 percent to 12 percent. Youth unemployment has also risen to 16.6 percent, with 94,500 young people now not in employment, education or training.
The report argues that monetary and government fiscal policy have contributed substantially to the deterioration, alongside international economic pressures. That assessment is the NZCTU’s interpretation of the causes; the Government has previously pointed to the economic cycle and the need to bring inflation under control as factors affecting employment.
With the election approaching, the NZCTU is calling for full employment to become a central economic objective, alongside changes to the Reserve Bank mandate, greater investment in housing and infrastructure, regional development, improved employment services and renewed support for apprenticeships and study.
For Māori and rangatahi, the numbers underline a critical election issue: not simply whether economic growth returns, but where the jobs will come from and whether the recovery reaches the communities that have experienced the greatest increase in unemployment.
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