Our feature article examines employment outcomes for young workers over the past three years. The deterioration of the job market since 2023 has been particularly hard on younger people, with youth unemployment and NEET rates increasing rapidly. We dig beneath the headline numbers to look at both the cyclical and longer-term trends in these rates. Of particular concern is the decade-long increase in the rate of ‘economically unengaged’ young people – those who are not in employment or education, are not actively seeking work, and are not caring for others. Currently, there are around 42,000 young people who are economically unengaged. The next government must make re-engaging this cohort a priority.
Our regular updates cover the September 2026 quarter data for employment, wages, welfare, and inflation. Labour market outcomes were even worse than expected this quarter. Unemployment increased to 5.7%, real wages fell on all measures, and the number of people in long-term unemployment (6 months or more) continued to grow alarmingly. This is all further evidence of how important it is that we get a change of government this election.
If you haven’t seen them already, you might want to check out our recent reports on how the labour market and real wages have changed over the last three years. We also recommend a recent report from the Australian Council of Trade Unions, which shows that the Reserve Bank and the National-led Government’s approaches to managing inflation have led to far worse employment outcomes in New Zealand than Australia, and for no tangible gain. These reports can be found below:
- NZCTU, Three Years of Pain: The State of the Labour Market, 2023–26, September 2026.
- NZCTU, Real Wages and the Cost of Living, 2023–26, October 2026.
- ACTU, A Tale of Two Strategies, November 2026.