Young people have been hit hard amid New Zealand’s growing unemployment rate, according to data released today by Stats NZ.
Today’s data revealed the unemployment rate has risen to 4.6%, up from 4.4% last quarter.
Almost half of the annual growth in unemployment and underutilisation is made up of young people, with the unemployment rate increasing from 15.1% to 20.7% this quarter for those aged between 15 and 19.
The unemployment rate for those aged between 20 and 24 has also risen from 5.8% to 8% this quarter.
Annually, the seasonally adjusted NEET rate, or the the proportion of young people not in employment, education, or training, has increased from 11.7% to 12.8%.
Over the last year, the number of people out of work has risen by 33,000 to 143,000.
The current rate is now the highest since March 2021.
Young people made up nearly half the annual growth in unemployment and underutilisation between the June 2023 and 2024 quarters. (Source: 1News)
Stats NZ labour market manager Deb Brunning said: “Young people accounted for almost half the increase in unemployment and underutilisation between the June 2023 and 2024 quarters.”
Annually, Stats NZ said unemployment for people aged 15 to 24 years rose 14,400 and underutilisation rose 29,300, a number which is not seasonally adjusted.
Underutilisation is a broad measure of untapped labour market capacity that includes unemployed and underemployed people, along with the potential labour force.
“Unemployment has been increasing since 2022, leaving the current quarter’s unemployment rate the highest since March 2021,” Brunning added.
“Recent rises in unemployment align with other economic indicators, including an increasing number of benefit recipients, a decreasing number of job vacancies, and declining GDP per capita.”
The seasonally adjusted underutilisation rate was 11.8% in the June 2024 quarter, up from 11.2% last quarter and 9.9% a year ago.
Over the year, the total number of underutilised people rose by 66,000 to 377,000.
