"The unemployment rate increased over the past year, up from 3.2 percent in the September 2022 quarter," Stats NZ work and wellbeing senior manager Victoria Treliving said.
The underutilization rate was 10.4 percent in the September 2023 quarter, which compared with 9.9 percent for the previous quarter, and 8.9 percent from the previous year, Treliving said, adding underutilization is a broader measure of spare labor market capacity than unemployment alone.
"Increases in unemployment and underutilization over the year indicate increasing spare capacity in the labor market following competitive labor market conditions in 2021 and 2022," Treliving said.
Underutilization grew the most among young adults, as youths aged 15-24 years accounted for half the total rise in underutilization over the year.
Compared with the rest of the population, 15-24-year-olds tend to have higher rates of underutilization. In the September 2023 quarter, the underutilization rate was 27 percent for those aged 15-24, compared with 7.1 percent for the rest of the population, Treliving said.
New Zealand's annual wage cost inflation was 4.3 percent in the year to the September 2023 quarter, unchanged from last quarter, according to Stats NZ.
The annual wage increase was driven by an increase to public sector salary and wages, up a record high of 5.4 percent annually, which was influenced by collective agreements for teachers, nurses, and the New Zealand Defense Force over the past year, Stats NZ business prices delivery manager Bryan Downes said.
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