New Zealand is facing a significant youth employment crisis ahead of its general election in November. According to the latest statistics, approximately 180,000 young people aged 15-24 are either unemployed or underemployed, representing nearly 37% of that age group. This represents the worst rate in 30 years according to Stats NZ. For young voters aged 18-34, unemployment ranks as the second-most pressing issue after the cost of living, according to recent polling data.
The employment situation has deteriorated markedly in recent years. Apprenticeship numbers have declined 32% since 2022, reaching a 15-year low in 2025. Entry-level positions have become particularly scarce, with many young people reporting dozens of unsuccessful job applications. Economic analysts note that young workers typically face disproportionate challenges during downturns, as employers prioritize candidates with more experience. The effects extend beyond immediate financial hardship, with concerns raised about long-term career impacts and mental health consequences.
New Zealand’s economy has been under pressure following the Covid-19 pandemic, experiencing recession and stagnation accompanied by rising inflation. Company liquidations increased 14% over the past year, and nearly 3,000 hospitality businesses ceased operations in September. While some economic indicators suggest modest improvement ahead, the job market remains constrained with a shift toward casual and short-term work rather than full-time positions.
The major political parties have outlined differing approaches to address youth unemployment. The opposition Labour party has pledged to support trades and apprenticeships, guarantee employment for graduate nurses, and establish a “Future fund” for business and infrastructure investment. The governing National party attributes high unemployment to previous fiscal mismanagement and argues that economic growth remains the solution. Additionally, the government is implementing stricter jobseeker benefit criteria for young people, which has drawn criticism from those concerned about adding further pressure on struggling families and individuals seeking employment.
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