Pacific unemployment soars despite NZ jobs growing nationwide

Pacific unemployment in New Zealand has more than doubled over the past two years, even as the country added 15,000 jobs in the final three months of 2025.

New data from Stats NZ show that overall employment is rising, with more people working longer hours and an increasing number seeking work.

Yet, Pacific communities continue to face the highest unemployment of any ethnic group.

Finance Minister Niclola Willis says the figures point to a strengthening economy.

“The unemployment rate increased 0.1 per cent in the quarter to 5.4 per cent, fractionally below the 5.5 per cent rate forecast by the Treasury in its December Half Year Economic and Fiscal Update,” Willis says in a press release.

“Obviously, we would prefer the rate to be lower still but the underlying details are positive and economists are expecting the unemployment rate to fall this year as the economy recovers.”

Finance Minister Nicola Willis. Photo/Supplied

She also notes improvement among young people, with those not in education, employment or training dropping from 13.7 per cent to 13.2 per cent.

“Many Kiwis are still doing it tough and there are heaps to do,” Willis says. “But all the signs are that the steps the government has taken to fix the basics and build the future are making it easier for businesses to invest, innovate, grow and employ more people.”

Labour says Pacific communities are being left behind.

Labour Deputy Leader, Carmel Sepuloni. Photo/Supplied

In a press release, Deputy Leader Carmel Sepuloni says cuts to programmes like Tupu Aotearoa have helped Pacific people gain skills and enter work.

“The construction sector, which is where many Pacific people work, has been gutted by this government,” Sepuloni says. “And now, just like tens of thousands of other New Zealanders, Pacific people are being forced to look overseas for work that should be available here.”

Tupu Aotearoa, funded by the Ministry for Pacific Peoples, continues to operate with $5.25 million per year. But the programme has lost $22m over the past four years.

Construction jobs have declined about six per cent in the year to June 2025.

Stats NZ reports 126,400 people left New Zealand last year, a 10 per cent increase on 2024.

Social impacts are mounting, according to analysts. Ana Ika, a policy analyst with the Salvation Army, says unemployment is contributing to food insecurity and financial stress.

Watch Carmel Sepuloni's most recent interview on Pacific Mornings below.

"The government's very much about the economy, growing infrastructure but the reality is homelessness, poverty, and food insecurity, we're seeing a significant increase in that,” Ika told John Pulu on PMN Tonga following the Salvation Army’s State of the Nation report.

As New Zealanders prepare to vote in November, Sepuloni says re-electing the government will continue to disadvantage Pacific communities.

“Pacific communities are falling behind under National and we cannot afford another three years of this,” she says. “Labour has a plan to invest in New Zealand and create well-paid jobs. Come November, Kiwis can make that choice.”