{
  "id": 150290,
  "title": "Unemployment rises to 11-year high of 5.6%",
  "url": "https://urgent.news/2026/08/04/unemployment-rises-to-11-year-high-of-5-6",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-04T23:02:50.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/business/892951/unemployment-rises-to-11-year-high-of-5-point-6-percent"
  },
  "original_language": "en",
  "account": "Unemployment in New Zealand surged to an 11-year high of 5.6 percent in the three months leading to June, according to Stats NZ. This increase came as workforce growth outpaced new job creation. The unemployment rate surpassed the revised 5.4 percent from the previous quarter, with 171,000 people now jobless - a 7,000 rise from the prior quarter and a 13,000 hike compared to a year ago. This figure exceeded numerous predictions, including the Reserve Bank's estimates from May. The widening joblessness is largely attributed to the weak economy and the ongoing US-Iran conflict, which have led businesses to lay off workers or halt hiring.\n\nA significant number of long-term unemployed individuals - those who have been jobless for over a year - accounted for around 19 percent of the total unemployed. The level of underutilization in the labor market, including both unemployed and underemployed individuals, reached a 12-year peak of 13.8 percent. Although the number of employed people increased by about 5,000 in the quarter, the economy now employs 33,000 more individuals than a year prior.\n\nYounger workers, aged between 15 and 24, saw an unemployment rate rise to 13.8 percent from 12.9 percent. The regions suffering the most from unemployment were Northland and Auckland, with rates exceeding 6 percent. All South Island regions, however, maintained unemployment rates below 5 percent. Despite the high unemployment numbers, the broad measure of wages continued its five-year decline, staying at a low of 2 percent growth. This was in contrast to a 4.1 percent increase in consumer prices. Another measure of wages showed a 1.1 percent rise in the average hourly rate, but there was a decline in the hours worked. The reported figures surpassed most forecasts, including those of the Reserve Bank. The central bank has emphasized that bringing inflation back to its 2 percent target is crucial for promoting growth and job creation. Economists and financial markets anticipate the bank to raise the official cash rate to 2.75 percent early next month to curb inflation fueled by global fuel prices.",
  "summary": "Economists had been expecting the rise as the job market struggles to gain momentum.",
  "key_points": [
    "Unemployment in New Zealand reached 5.6%, an 11-year high",
    "Workforce growth lagged behind new job creation",
    "Weak economy and US-Iran conflict blamed for job losses"
  ],
  "editors_take": "The surge in unemployment to an 11-year high signals that economic weakness and global tensions are now significantly affecting job security, particularly for younger workers and in certain regions.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}