PM blames past govt for Pacific unemployment rise, as new national rate remains steady

Prime Minister Christopher Luxon says restoring the economy is the biggest action the government can take as Pacific unemployment continues to rise.

He blames the mismanagement of the previous Labour government for the current hardships faced by Pacific communities.

“That's why we're doing everything we can so that we've got inflation under control, we've got interest rates coming down, got the economy growing, and with that, then businesses are expected to increase hiring as a result,” Luxon says.

“Going forward from here, we're doing everything we can to make sure that we're supporting people through.”

Recent figures from StatsNZ indicate that Pacific unemployment is at 12.1 per cent, significantly higher than the national average.

Finance Minister Nicola Willis says the unemployment figures are lower than initially forecasted.

Prime Minister Christopher Luxon is backing his government's economic plans. Photo/PMN News/Ala Vailala

The Treasury had predicted a rate of 5.4 per cent, whereas recent data shows the unemployment rate at 5.2 per cent.

“We remain confident in New Zealand’s economic prospects and are working hard to create the conditions for future job creation with $6 billion of government-funded construction work kicking off before Christmas, fast-track projects beginning, exports growing, and the Investment Boost tax policy giving businesses a reason to invest and grow,” Willis says.

“We also note that average hourly earnings rose 4.5 per cent in the past year, driven by wages in the private sector. This is well ahead of inflation at 2.7 per cent.”

Unemployment rose to 5.2% in the June quarter of 2025, according to new numbers from Stats NZ — the highest it's been since September 2020. Photo/PMN News/Ala Vailala

Labour MP for Māngere, Lemauga Lydia Sosene, says the government lacks a plan to improve employment opportunities for Pacific people, resulting in 47,000 people leaving New Zealand for Australia.

“Words are one thing, actions are another,” Lemauga tells Khalia Strong on Pacific Mornings. “We've seen the jobs for construction, jobs for roading, jobs in the health industry all disappearing because this government, Prime Minister Luxton and his cabinet are making decisions that are affecting Kiwis.”

She criticises the government’s decision to cut $22 million from the Tupu Aotearoa programme, which previously helped Pacific people in securing employment.

Watch Lemauga Lydia Sosene's full interview below.

Sosene points to concerns raised at a recent Māngere youth forum, saying that education is one of the biggest issues for the community.

“Education gives New Zealanders, gives Pasifika families hope to achieve, to go on to tertiary study or jobs, when you feel that you are being supported by a government who's got good policies.

“So the Tupu Aotearoa programme, for example, and different programmes that we head for, with a focus on Pasifika because of the figures and the representation, those are the things we need to look at, and youth are asking for their voice to be heard, and to be included in the decision making of this country.”