In the December 2025 quarter, New Zealand's seasonally adjusted unemployment rate increased slightly to 5.4% from 5.3% in the previous quarter, aligning with market expectations. This marked the highest unemployment rate since the September 2015 quarter, as the number of unemployed individuals rose by 5,000 to a total of 165,000. Meanwhile, there was a minor uptick in employment during the same period. The labour force participation rate increased to 70.5% from 70.3%, indicating a slight boost in workforce involvement. The underutilisation rate, which provides a broader view of available labor capacity, registered at 13.0%, significantly higher than the 12.2% recorded a year earlier. These statistics reflect an increased engagement in the labor market amid mixed indicators of slack, suggesting a cautious improvement in conditions.