New Zealand's unemployment rate has climbed to 5.4%, with 165,000 people now out of work - the highest level since 2015.
The figures pile pressure on the coalition government as its economic policies face increasing scrutiny, with critics pointing to austerity measures and public sector cuts as contributing factors.
The latest data from Stats NZ shows unemployment continuing its upward trajectory, marking another quarter of deterioration in the labour market.
Mate, when unemployment hits levels not seen in nearly a decade, it's a sign the economy isn't just slowing - it's stalling. And for a government that campaigned on economic competence, these numbers are politically toxic.
The coalition government's response to New Zealand's economic challenges has been spending freezes and public sector job cuts. Finance Minister Nicola Willis has argued fiscal discipline is necessary to control inflation and restore economic stability.
But critics say you can't cut your way to prosperity. When you slash public sector jobs and freeze government spending during an economic slowdown, you accelerate the decline by reducing overall demand in the economy.
The unemployment spike comes alongside other warning signs: weak consumer spending, declining business confidence, and a retail sector shedding jobs. The Warehouse Group's announcement this week of 270 head office redundancies is just the latest example.
For workers, the pain is real. 165,000 people without work means 165,000 families struggling to pay mortgages, buy groceries, and plan for the future. In a country of 5 million, that's a significant chunk of the workforce.
The government's challenge now is whether to maintain its austerity approach or shift gears before the labour market deteriorates further. The political window for course correction is closing.
