Why our unemployment rate is still 'pretty lousy'

New jobs data out today spells worry for New Zealand’s economy. 

The unemployment rate was 5.4% in the December 2025 quarter – the highest since September 2015. 

Most banks had expected unemployment to hold steady at 5.3%, ASB was a bit more bullish picking 5.2%. 

It means 165,000 people were unemployed last quarter – a quarterly increase of 5,000 people...  

But, what does it all mean? What sectors are struggling? And can the government keep calling it all the “mess they inherited”?  

Today on The Front Page, NZ Herald business editor at large, Liam Dann, is with us to dive into the data.  

Follow The Front Page on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.

You can read more about this and other stories in the New Zealand Herald, online at nzherald.co.nz, or tune in to news bulletins across the NZME network.

Host: Chelsea Daniels
Editor/Producer: Richard Martin
Producer: Jane Yee

See omnystudio.com/listener for privacy information.