Skilled Workers Struggle in Job Market as Unemployment Hits 5.2%

The job market in New Zealand is presenting significant challenges for skilled workers, as reflected in the latest unemployment figures. The national unemployment rate has surged to a near five-year high of 5.2 percent, leaving approximately 156,000 people without work. This increase comes as many businesses either lay off employees or halt hiring altogether.

Among those affected is James Brown, an insurance adjustor who relocated to Brisbane after being made redundant over a year ago. Despite his qualifications and experience, Brown has struggled to find employment upon his return to New Zealand. He expressed his frustration, stating, “It’s incredibly stressful and depressing not even being able to get a call centre job in New Zealand.” Brown noted that he is not alone; many white-collar workers are facing similar difficulties, leading to a pervasive sense of hopelessness regarding job prospects.

Unemployment Trends in Auckland

The situation is particularly dire in Auckland, where the unemployment rate stands at 6.1 percent for the June 2025 quarter, the highest among all regions. This marks an increase of about 15,000 jobless individuals compared to the same period last year. Alan McDonald, head of advocacy at the Employers and Manufacturers Association (EMA), commented on the troubling figures, noting that Auckland’s economy relies heavily on manufacturing and services, sectors that have not seen the recovery that others, such as agriculture, have experienced.

McDonald pointed out that, while some regional economies are beginning to recover, Auckland’s challenges persist. “Numbers from the Auckland Council Economic Unit indicated unemployment would be quite high in the June quarter, and it has been for some time,” he stated. He highlighted that sectors such as hospitality, tourism, and education have been significantly impacted, contributing to the overall economic strain.

Since March, the EMA has reported a noticeable increase in inquiries about redundancies and restructuring, indicating ongoing instability within the job market. McDonald had initially hoped that the unemployment rate of 5.1 percent recorded in December 2024 might signal a turning point. Instead, he emphasized that conditions remain challenging, stating, “Things are still very tight and very tough.”

The recovery process may take longer in Auckland compared to other areas, such as Christchurch, where the service sector is more directly tied to agricultural growth. McDonald explained that improvements in the primary sector are not yet translating into immediate benefits for Auckland. “We’re all getting a bit sick of waiting. But things are starting to turn,” he remarked, suggesting that optimism may eventually emerge as the economy stabilizes.

As skilled workers like James Brown continue to face hurdles in securing employment, the broader implications of rising unemployment rates highlight the urgent need for economic strategies that support job creation in affected regions. The challenges ahead remain significant, but there is a glimmer of hope that recovery may soon come to fruition.