The unemployment stats for Pacific peoples is more than double the national average. Photo: 123rf
Pacific people in New Zealand are being hit the hardest by rising unemployment, according to the country's official data agency.
Stats NZ numbers came out on Wednesday showing the unemployment rate rising to 5.3 percent in the three months ended September.
New Zealand Council of Trade Unions economist and director of policy Craig Renney said that is the highest its been in a long while.
"That's the highest rate for nine years. There's now 160,000 people who are unemployed. That's the highest number of people who are unemployed in New Zealand since 1994," Renney said.
However, the statistics reveal an even more worrying picture for Pacific peoples, with unemployment at 12.1 percent, more than double the national average and the highest of any other ethnic group in New Zealand.
Renney said when the data is broken down in terms of who is doing what, why and when inside the Pacific workforce, it is clear that labour force participation is pretty steady, currently sitting at 68.5 percent and 68.2 about 12 months ago.
But what has happened is the number of people unemployed has gone up, he said.
"In September 2024, there were 19,100 Pacific peoples, who were unemployed. It's now 25,400," he said.
"If I go back two years, it was 16,000 people unemployed against 25,000 people being unemployed now. There's been a big lift in the number of people who are unemployed."
At the same time Stats NZ numbers show a consistent fall in the employment rate for Pacific peoples. It was 63.1 percent two years ago now its 60.2 percent - meaning there are more Pacific people entering the job market than there are jobs.
Nicola Willis Photo: RNZ / Mark Papalii
Finance Minister Nicola Willis told Morning Report she was confident the economy is recovering, saying unemployment is always the last thing to correct in a recovering economy.
"I am very confident we are in a recovery. All of the economists I speak to think that the economy is currently growing and that that growth will accelerate over the coming months," she said ahead of the actual numbers coming out on Wednesday morning.
"And that is backed up by the stories I am hearing in our community. Doesn't make it easy, doesn't mean that it hasn't been a really tough time for a lot of people."
But Labour's deputy leader and Pacific Peoples spokesperson Carmel Sepuloni disagrees with Willis.
"So many people, so many communities are not feeling any sense of recovery whatsoever," Sepuloni said.
Willis said the government is growing the economy and business confidence with things like tax relief and big infrastructure spending.
Sepuloni said the reality on the ground is driving outward migration, especially for Pacific people.
"When Pacific unemployment is at 12.1 percent, its no wonder that so many Pacific people are choosing to cross the ditch in search of opportunities and in search of work," she said.
Carmel Sepuloni Photo: RNZ / Angus Dreaver
Another grim statistic that came out is that the average real wage increase for all New Zealanders is 2.1 percent, whereas inflation right now is three percent.
Renney said in real terms this means the average workers wages are going backwards.
"And as a consequence, that is again, a big part of the reason why people are finding, you know, paying the bills getting ahead such a real struggle.
"Because although the headline rate of inflation might be lower, wages are so much lower, and they're not able to get ahead of the cost increases that are still turning up.
Renney said the least negative statistic to come out on Wednesday is that there are now more than 400,000 people who are under-utilised, meaning that they want more work, and they cannot currently get it.
