Unemployment rose to its highest level in nearly 11 years as the economy shed jobs, and there are signs some people may have stopped looking for work.
By Gyles Beckford for RNZ
Stats NZ said the unemployment rate was 5.7% in the three months ended September, up from 5.6% in the previous quarter.
A total of 174,000 people were unemployed, a rise of 3000 on the previous quarter and 14,000 higher than a year ago.
The data was above most forecasts.
Unemployment has held at decade highs as businesses have generally held on to staff, but been cautious about hiring because of weak demand and higher costs.
The numbers also showed a marked rise in the number of long term unemployed - those out of work for a year or more - making up about 21.5% of the total, and the highest since mid-1994.
Labour market spokesperson Abby Johnston said the level of employment had changed little from the previous quarter, but there had been changes to how people were employed.
"Casual and fixed term roles increased over the year, while there was a shift towards part-time employment over the quarter."
The number of casual employees increased by nearly 20% over the year, and those in fixed term jobs rose 19%.
Fewer participate in workforce
The labour force fell by 1000 over the quarter, but was up 34,000 on a year ago.
However, the number not in the labour force increased, as did the working age population, while the participation rate fell slightly.
The level of underutilisation, including the unemployed and under-employed, used as a measure of slack in the jobs market, stayed at a 12-year high of 13.8%.
The number employed fell by about 4000 in the quarter, but with 19,000 more people in work than a year ago.
The number of people between 15 and 24 years who were unemployed, not in education or training increased to 14.1% from 13.8%.
The regions with the highest unemployment were Northland at 8.3%, Auckland, Waikato, and Manawatu-Whanganui with rates above 6%. Most South Island regions were below 5%.
The broad measure of wages showed overall growth remaining near a five year low of 2.1%.
An alternate wages measure showed take home pay rose 3.3% compared to the 3.7% inflation rate.
There was a drop in the number of hours worked, which Stats NZ noted may be connected to an increase in those saying it was for holiday reasons.
The RBNZ has said subdued wage growth is needed to reduce inflation pressures.
The latest figures, released on Wednesday, had been expected to stay at around the same rate as growth in the workforce matches the jobs on offer.
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