New Zealand's unemployment rate edged up to 5.2% in the June quarter of 2025, slightly above the previous quarter's 5.1% and in line with market expectations to the highest level since late-2016. The number of unemployed individuals rose to 158,000, up from 156,000 in March and marking an annual increase of 16,000 people, or 11.1%. Meanwhile, the seasonally adjusted labour force participation rate dipped to 70.5% from 70.7% in the previous quarter, indicating a slight contraction in workforce engagement. The underutilisation rate - a broader measure of spare labour capacity - also climbed to 12.8%, up from 12.4% in March and 11.9% a year earlier. These figures suggest growing slack in the labor market, adding pressure on policymakers as economic momentum continues to soften.