Secure employment and income are fundamental to wellbeing. But many New Zealanders have experienced a collapse in their employment and income security over the past three years. Hundreds of thousands of Kiwis are out of work, and many are staying unemployed for very long periods.
Unemployment can be deeply harmful. It can cause a life-long reduction in earnings, permanent disconnection from the job market, and lasting damage to people’s emotional and mental wellbeing. And unemployment is not just destructive for the individuals and whānau who experience it. High unemployment can also hollow out communities and cause broader economic damage.
Policy decisions have caused the deterioration in employment outcomes over recent years: the Reserve Bank’s monetary policy and the coalition Government’s fiscal approach and failure to proactively support employment are largely to blame. International shocks such as the Iran war and Trump’s tariffs have made things harder, but are not the principal causes of labour market weakness.
The upcoming election presents political parties with an opportunity to set out how they will support job creation and reduce unemployment over the next term of government. Our goal as a country should be to create an economic system in which all people who want to work can find a job that affords them a decent quality of life. We are very far from achieving that goal at the moment.
This report examines the key employment indicators to show how far the labour market has deteriorated since 2023. This data demonstrates just how deep the unemployment crisis has become in New Zealand, and the urgent need to act. The report also sets out what NZCTU thinks the next Government needs to do to achieve better employment outcomes for working people.