Unemployment eased slightly in the March 2026 quarter, but more young people were out of work, education or training, according to new figures from Stats NZ.

The seasonally adjusted unemployment rate fell to 5.3 percent from 5.4 percent in the December 2025 quarter. That equated to 163,000 people unemployed, down from 165,000, based on the Household Labour Force Survey.

“The unemployment rate was 5.3 percent in the March 2026 quarter, compared with 5.4 percent in the December 2025 quarter,” labour market spokesperson Abby Johnston said.

The underutilisation rate, a broader gauge of spare capacity in the labour market, was unchanged at 12.9 percent. There were 406,000 underutilised people in the March quarter.

Youth engagement weakened. The seasonally adjusted NEET rate — the share of 15 to 24-year-olds not in employment, education, or training — rose to 14.4 percent from 13.3 percent. While the male NEET rate has edged up over recent quarters, young women continue to record higher rates than young men.

“Women aged 20 to 24 continue to have the highest NEET rate, rising 1.9 percentage points to 20.3 percent in the March 2026 quarter,” Johnston said.

Underutilisation includes people who are unemployed, those in the potential labour force (for example, available but not actively seeking work), and those who are underemployed. The NEET measure includes school or university leavers who are looking for work.