Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessNew Zealand Unemployment Reaches 11-Year High on Fuel ShockNew Zealand’s jobless rate rose to an 11-year high in the second quarter as the global energy shock squeezed company profits while more people sought work.Author of the article:Last updated 1 day ago You can save this article by registering for free here. Or sign-in if you have an account.A jobseeker fills out an application during the Catalyst Career Group Dallas Job Fair in Dallas, Texas, US, on Wednesday, July 29, 2026. The US Department of Labor is scheduled to release initial jobless claims figures on July 30. Photographer: Dylan Hollingsworth/Bloomberg Photo by Dylan Hollingsworth /Bloomberg(Bloomberg) — New Zealand’s jobless rate rose to an 11-year high in the second quarter as the global energy shock squeezed company profits while more people sought work.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorUnemployment increased to 5.6% from an upwardly revised 5.4% three months earlier, Statistics New Zealand said Wednesday in Wellington. That’s the highest level since the third quarter of 2015 and exceeded the median estimate of 5.4%. Employment climbed 0.5% from the prior three months, outpacing the 0.1% estimate, though that gain was partly absorbed by a surprise increase in the participation rate.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againNew Zealand’s economic recovery remains fragile at a time of geopolitical ructions such as the US-Iran war, which has driven up costs and eroded business confidence. Still, the economy added 33,000 jobs in the 12 months through June — the best annual gain since 2023 — suggesting the labor market, while soft, is poised for recovery.“Improving labor demand and supply metrics are good underlying signs despite the higher headline unemployment print,” said Wesley Tanuvasa, an economist at ASB Bank in Auckland. “Nevertheless, labor market slack is still visible, with broader measures of underutilization remaining high. This has helped to keep wage pressures modest.”The New Zealand dollar edged lower after the report, buying 58.78 US cents at 11:25 a.m. in Wellington, and the yield on the two-year government note fell 6 basis points to 3.56%.The jump in unemployment will be unwelcome news for the center-right coalition government, which faces a general election in early November. The ruling National Party trails in opinion polls as voters grow weary of its claims to be the superior economic manager at a time when the recovery is still struggling for traction.The labor market report showed annual wage inflation accelerated for the first time in three years. Ordinary time wages for non-government workers gained 2.1% from a year earlier, rising from a 2% pace in the first quarter.The Reserve Bank, faced with surging inflation, increased the Official Cash Rate to 2.5% in July. It said then that a further reduction in stimulus was likely and investors are wagering the benchmark will rise to 3% by the end of the year.Governor Anna Breman, in an interview with the Post newspaper published Wednesday, reiterated that she is focused on returning inflation to the midpoint of the RBNZ’s 1-3% target. She maintained that it is possible to deliver low and stable inflation while also seeing stronger economic growth and an improving labor market.“My concern is that some people are starting to say things like ‘this is the new normal with high inflation’, and that’s not at all the case,” Breman told the newspaper. “We’ll get back to low and stable inflation, and just because we had a few hits now doesn’t mean that we can’t achieve that.”More details from reportThe labor force participation rate, which measures how much of the working-age population is actively seeking employment, unexpectedly climbed to 70.7% from 70.4%. The median estimate was 70.4%.Underutilization, a broad measure of spare capacity in the labor market, rose to 13.8% — the highest level since 2013.—With assistance from Matthew Burgess.(Updates with chart, economist in fifth paragraph, RBNZ governor’s inflation comments in ninth.) 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