New Zealand's seasonally adjusted unemployment rate edged up to 5.4% in the December 2025 quarter from 5.3% in the previous period, matching market expectations. This was the highest jobless rate since the September 2015 quarter, as the number of unemployed individuals rose by 5,000 from the prior quarter to 165,000. At the same time, employment rose marginally during the quarter. The labour force participation rate also rose to 70.5% from 70.3%, signaling a modest increase in workforce engagement. The underutilisation rate, a broader measure of spare labour capacity, stood at 13.0% and was well above the 12.2% level a year earlier. These figures pointed to higher engagement in the labour market amid mixed signals on slack, suggesting a tentative improvement in conditions.