What's next for a defeated Labour and a conquered Chippy?

With a National-led government set to take over, the red-wave of 2020 is firmly in Labour's rear-view mirror.

Based on the current vote, Labour will lose 29 seats and some senior MPs as a consequence. For a party who just three years ago had the first absolute majority under MMP in a landslide victory, it's a massive fall from grace.

So what next for the Labour Party and in particular its leader Chris Hipkins?

In his concession speech at Labour HQ in Lower Hutt, Hipkins highlighted Labour's achievements — guiding the country through the pandemic, raising 77,000 children out of poverty and reducing climate emissions.

He said becoming Prime Minister was the honour of his life but that he knew going into it would be an 'uphill battle'.

"I'm proud of the progressive programme we put forward in this campaign, one that supports everyone not just the better-off."

Hipkins said that the Labour Party will take time to "reflect and refresh" in its new role as the Opposition.

"I can promise that we will keep fighting for working people because that is our history, and our future.

"When the tide comes in big it almost invariably goes out big as well... but Labour is still here, it is not going anywhere, and we will get up again as we have done many times before."

While thanking his family for their ongoing support, Hipkins appeared visibly emotional, to which the crowd responded by chanting "Chippy, Chippy!"

Speaking to 1News, Hipkins said that it had been a "really challenging three years".

"We've faced a perfect storm if you like with a cost of living crisis, the aftermath of a global pandemic, there have been a lot of things we've been dealing with."

Hipkins says Labour needs to take stock and do “some refreshing”.

“The party needs some time to do that,” he said, alluding to the fact he will stay on as leader for now.

Commentators provided their own perspectives on Labour's campaign, as well as its future.

Political commentator Morgan Godfrey said that Hipkins' "strategic error" was ruling out policies at the beginning of his tenure as Prime Minister.

"For the following nine months, people knew what Labour was not going to do but Chris Hipkins never really sold what Labour would do."

Former Labour minister Kris Faafoi said it is time for a rebuild, but that the party had to be mature about it.

“If they want to bounce back, and they need to, I think for the strength of the party and also for the country, they’re going to have to do opposition differently.”

Former Labour leader David Cunliffe said that this is an "election of a number of firsts".

"The change in the Māori seats, the destruction of the West Auckland red wall and the emergence of two viable parties on the left of politics other than the main party that are winning seats."

He said that there will need to be some 'new thinking' when it comes to collaboration or competition on the left.