Govt Reaffirms Economic Recovery Plan Amid Slight Rise in Unemployment

Since taking office, the coalition Government has prioritized stabilizing the economy after what Willis described as a period of “reckless spending, sky-high inflation, and rising interest rates.”

New Zealand’s Finance Minister Nicola Willis has reaffirmed the Government’s commitment to economic recovery and job creation following the release of the latest labour market statistics. Data published by Stats NZ today revealed that the unemployment rate rose slightly from 5.2 per cent to 5.3 per cent in the September quarter, aligning closely with both pre-election and updated economic forecasts.

Willis emphasized that while the uptick in unemployment underscores ongoing challenges, it also highlights the importance of the Government’s policies to strengthen the economy’s foundations and create more opportunities for Kiwis seeking work.

“Our Government is determined that New Zealanders who are seeking work can find it,” Willis said. “That’s why we’re so focused on strengthening the foundations from which local businesses can grow and create new jobs.”

Rebuilding Confidence and Fixing Economic Foundations

Since taking office, the coalition Government has prioritized stabilizing the economy after what Willis described as a period of “reckless spending, sky-high inflation, and rising interest rates.” According to the Finance Minister, fiscal repair and restraint have already begun to yield results.

“We’ve successfully fixed the foundations. Taxes have been reduced. Inflation is back in band. Interest rates have fallen. Recovery is underway,” Willis stated.

The Government’s strategy aims to foster business confidence, encourage investment, and stimulate growth across key industries. Willis reiterated that while challenges remain, the economy is on a recovery trajectory, and the Government’s role is to accelerate momentum.

Key Economic Initiatives

Willis outlined a range of initiatives the Government has launched under its “Going for Growth” plan, designed to energize both public and private sectors. These include:

• Investment Boost tax incentive to encourage business expansion and innovation.

• Acceleration of $7 billion worth of major public infrastructure projects before Christmas to support job-rich sectors such as construction, transport, and housing.

• Fast-tracking of consents for privately funded projects expected to create thousands of new jobs.

• Trade and investment promotion, including opening new international markets for exporters and attracting overseas capital.

• Cutting red tape to make it easier for small and medium-sized enterprises (SMEs) to operate and expand.

• Sector-specific growth support, with targeted initiatives in agriculture, technology, film, and New Zealand’s rapidly developing space industry.

These measures, Willis noted, are already helping to restore business optimism and create conditions conducive to sustainable employment growth.

A Call for Fiscal Responsibility

The Finance Minister cautioned against what she called “expansive new taxes” and a “return to reckless fiscal management,” warning that such moves could undermine the progress made in restoring stability.

“New Zealanders have worked incredibly hard for economic recovery,” she said. “Now is not the time for expansive new taxes, or a return to reckless fiscal management. Now is the time for our Government’s plan to back aspiration, effort and job-creation.”

Looking Ahead

Economists have noted that the slight rise in unemployment may reflect a lagging effect from earlier economic slowdowns, even as leading indicators such as inflation and business confidence begin to improve. The Government’s continued focus on infrastructure, investment, and innovation is expected to help absorb jobseekers into growing sectors over the coming year.

As New Zealand positions itself for a stronger 2026 fiscal outlook, the Government’s challenge will be balancing fiscal prudence with policies that support inclusive growth — ensuring that the benefits of recovery reach households across the country.