Nine To Noon Unemployment rises to a 10 year high of 5.4 percent
Feb 3, 2026
Gyles Beckford, RNZ business editor who analyzes labour and economic data, breaks down a surprising unemployment rise to 5.4%. He explains why job gains coincided with higher unemployment. Short segments cover workforce re-entry, a jump in part-time roles and women returning, youth underutilisation, slow wage growth vs inflation, and what this could mean for interest-rate decisions.
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Unemployment Up Even With Job Gains
- The unemployment rate rose to 5.4% despite 15,000 jobs being added in the quarter.
- More people re-entered the workforce chasing jobs than new jobs created, pushing unemployment up.
Two Million Fewer Hours Worked
- Gyles recounts a conversation with Craig Rennie noting we've worked two million fewer hours than a year ago.
- That remark illustrated how deeply the economy was hit in prior periods.
Rise In Part-Time Work Masks Weakness
- Part-time work increased noticeably and many returning workers, especially women, took part-time roles.
- Underutilisation remains high (~13%), showing people want more hours than they can get.