More Kiwis Moving Into Work Despite Economic Headwinds, New Data Shows

New Zealand is seeing encouraging signs in its labour market, with thousands more people transitioning off benefits and into employment over the past year, according to the latest Government figures released for the March 2026 quarter.

Minister for Social Development and Employment Louise Upston has welcomed the data, describing it as evidence that targeted welfare reforms and employment initiatives are beginning to deliver tangible results—even amid ongoing economic uncertainty.

Strong Annual and Quarterly Gains

The figures reveal that 5,580 more people moved from benefits into work in the year to March 2026, compared to the same period the previous year—highlighting a steady improvement in employment outcomes.

Momentum has also carried through on a quarterly basis:

• 24,615 people exited a main benefit into employment in the March 2026 quarter

• This represents an increase of 1,347 compared to the March 2025 quarter

"These are not just statistics—they represent thousands of New Zealanders gaining independence, stability, and opportunity through work," Ms Upston said.

Decline in Benefit Numbers Signals Shift

Alongside rising employment transitions, the total number of people receiving benefits has also declined—suggesting broader shifts in labour market participation.

Key changes include:

• Jobseeker Support recipients decreased by 8,289 (3.7%)

• The total number of working-age people on a main benefit dropped by 17,661 (4.1%) from the December 2025 quarter

This marks one of the more notable reductions in recent quarters, indicating that more individuals are either entering employment or moving off long-term support.

Welfare Reset Driving Behavioural Change

The Government attributes much of this progress to its ongoing "welfare reset", which focuses on increasing accountability while providing practical pathways into employment.

Central to this approach is the Traffic Light System, introduced in mid-2024, which tracks jobseeker engagement and encourages more active participation in job searching.

"The system is helping jobseekers better understand their responsibilities and stay focused on finding work," Ms Upston said.

Targeted Support Through MSD Programmes

Beyond compliance measures, the Ministry of Social Development (MSD) has expanded its employment support services, with programmes designed to improve job readiness and connect people with real opportunities.

Initiatives include:

• Kōrero Mahi seminars, offering guidance on job expectations and career planning

• CV writing and interview preparation support

• Referrals to job vacancies, training programmes, and tailored case management

These services aim to address barriers to employment and ensure jobseekers are equipped with the skills and confidence needed to secure sustainable work.

Resilience Amid Economic Challenges

The positive employment trends come against a backdrop of challenging domestic and global economic conditions, including slower growth, cost-of-living pressures, and uncertainty in international markets.

Labour market experts note that in such conditions:

• Job creation can slow

• Competition for roles can increase

• Vulnerable groups may face greater barriers to employment

Against this context, the increase in benefit-to-work transitions is being viewed as a notable outcome.

"We know many New Zealanders are still doing it tough, but these results show progress. They demonstrate that with the right support and expectations, people can and do move into work," Ms Upston said.

Focus on Long-Term Employment Outcomes

The Government has emphasised that its strategy is not just about reducing benefit numbers, but about enabling long-term, sustainable employment.

This includes:

• Matching jobseekers with suitable roles

• Supporting skill development and training

• Encouraging proactive engagement with the labour market

Looking Ahead

While the latest figures point to positive momentum, officials acknowledge that maintaining progress will require continued focus—particularly as economic conditions remain uncertain.

The Government says it will continue investing in employment support programmes while reinforcing expectations around job seeking, with the aim of building a more resilient and inclusive labour market.

"Our priority is clear: helping people into work, supporting income growth, and ensuring New Zealanders have the opportunity to build better futures for themselves and their families," Ms Upston said.