Unemployment Rate At 4.8 Percent

Unemployment continues to grow, with more people remaining unemployed for longer periods and a declining employment rate, while wage growth slows, according to figures released by Stats NZ today.

In the September 2024 quarter:

• unemployment rate was 4.8 percent
• employment rate was 67.8 percent
• annual wage inflation was 3.8 percent
• average ordinary time hourly earnings were $41.98.

The seasonally adjusted unemployment rate, as measured by the Household Labour Force Survey, was 4.8 percent in the September 2024 quarter, compared with 4.6 percent in the previous quarter.

"The unemployment rate has grown over the last two years, rising from 3.2 percent in the September 2022 quarter to 4.8 percent this quarter," labour market statistics manager Deb Brunning said.

The underutilisation rate was 11.6 percent in the September 2024 quarter. This compares with 11.8 percent in the June 2024 quarter. Underutilisation is a broad measure of untapped labour market capacity that includes unemployed and underemployed people along with the potential labour force.

Unemployment lasting longer

Annually, the number of unemployed people increased by 24.2 percent to 144,900 (not seasonally adjusted). There were annual increases in the number of people who had been unemployed for:

• three to six months - up 47.2 percent to 29,500
• over six months to one year - up 53.2 percent to 32,500
• over one year - up 55.5 percent to 16,900.

The number of people unemployed for shorter periods remained relatively steady over the year.

More people not in the labour force

The seasonally adjusted labour force participation rate in the September 2024 quarter was 71.2 percent, down 0.5 percentage points over the quarter and 0.8 percentage points over the year.

Over the year, the number of people who were not in the labour force (NILF) grew by 57,000.

"There are many reasons why a jobless person might be not in the labour force rather than unemployed, including retirement, discouragement, study, or being permanently unable to work," Brunning said.

"From the survey, some of the largest increases in those not in the labour force over the year came from people mainly engaged in leisure activities, studying or training, and taking care of themselves due to their own sickness, illness, injury, or disability."

Employment rate falls

The seasonally adjusted employment rate fell to 67.8 percent in the September 2024 quarter. This was down from 68.4 percent in the June 2024 quarter and 69.3 percent in the September 2023 quarter.

The figures show 2.9 million people were employed in the September 2024 quarter. This was not a statistically significant change from the previous year, but it was a smaller proportion of the working-age population, which grew 75,000 annually.

"While net employment remained stable, there were changes in who was employed over the year, as 45,700 more people who had been recently employed became jobless," Brunning said.

"Compared with last September quarter, there were about a third more people reporting they had left their last job through redundancies or business shutdowns."

The number of jobless people who had been employed in the last five years and left that role due to layoffs, redundancies, or business closures rose 34.5 percent annually to 55,000 (not seasonally adjusted).

Wage growth slows

In the year to the September 2024 quarter, all salary and wage rates (including overtime), as measured by the labour cost index, increased 3.8 percent. This compares with 4.3 percent in the year to the June 2024 quarter.

Average ordinary time hourly earnings in the Quarterly Employment Survey rose 3.9 percent in the year to the September 2024 quarter, compared with 5.0 percent in the year to the June 2024 quarter.