New Zealand Faces Sharp Job Losses as Labour Market Weakens
New Zealand Faces Sharp Job Losses as Labour Market Weakens
New Zealand's job market has taken a significant hit, with 27,850 fewer jobs recorded in June 2025 compared to the same period last year, according to the latest data from Statistics New Zealand (Stats NZ). The loss is particularly felt among young people, who are struggling to find stable employment in an increasingly competitive and challenging environment.
Key Sectors Hit Hard
Several sectors have experienced notable job losses. Construction has seen a 6% decline, amounting to 12,169 lost jobs, while manufacturing has lost 5,850 jobs (2.5%). Professional, scientific, and technical services also saw a 2.7% drop, and administrative and support services fell by 4.7%, or 4,860 jobs. Only the education and training sector and primary industries added jobs, offering some relief in a largely bleak landscape.
Young People Bear the Brunt
Young people are especially affected by the weak labour market. Those aged 15 to 19 have seen a 10% drop in jobs, while those aged 20 to 24 have lost 3.5%, and those 25 to 29 have experienced a 3.9% decline. Hugh Hawkins, a 23-year-old graduate, shared his frustration: “I’ve applied for jobs, felt genuinely qualified, and still received rejection emails with 630 applicants vying for the same role.”
Economic Outlook Remains Uncertain
Infometrics economists have noted that recent revisions to the data suggest a weaker-than-expected job market. June's narrow rise in filled jobs could even be revised to flat or negative growth in future reports. Regional disparities are also evident, with Auckland and Wellington both experiencing year-on-year declines in filled jobs, while Canterbury saw a slight increase of 0.1%.
Experts Warn of Lingering Effects
ASB senior economist Mark Smith highlighted that young people are disproportionately affected. “There are likely to be more job losses than the data indicates,” he said, noting that some businesses may have added roles during the year. The economic challenges from the pandemic continue to have a lingering impact, with the unemployment rate expected to rise in the coming months.
Calls for Action
Green Party spokesperson Ricardo Menendez-March urged the government to “take charge and create jobs that help us build a better future.” He emphasized the need for policies that address the growing unemployment crisis, particularly for young people and those in vulnerable sectors.
As the country grapples with the consequences of a weakening labour market, the challenge remains to reverse the trend and provide sustainable opportunities for those most affected.
