New Zealand is facing its highest rate of youth unemployment in three decades, with 37% of 15-24-year-olds categorised as "underutilised" in the past quarter. This figure, from Stats NZ, represents 180,000 young people who are either unemployed or underemployed.
The struggle to find work is evident among young jobseekers. Luta Matagi, 23, has spent seven months searching for employment without success, while Michael, 20, has applied for at least 40 entry-level jobs in two years without securing an interview. Government figures also show a 32% decline in apprenticeship numbers since 2022, reaching a 15-year low in 2025.
As New Zealand prepares for a general election in November, unemployment has emerged as a key issue. An Ipsos poll indicates it is the second most pressing concern for voters aged 18-34, after the cost of living.
Shamubeel Eaqub, chief economist at Simplicity, noted that young people often bear the brunt of economic downturns, competing with more experienced candidates for limited vacancies. He warned that this can have lasting effects on both their careers and mental health.
The government has pledged to grow the economy to create more jobs for young people, but is also tightening jobseeker benefit criteria for some in this age group. From November, 18-19 year olds whose parents earn a combined income of $65,529 or more will be prevented from accessing the benefit.