In the heart of Lower Hutt, a nondescript building buzzes with activity. Inside, a group of young people, aged between 15 and 24, are honing their job-seeking skills with the help of Youth Inspire, a non-profit organization. Their laughter and camaraderie contrast sharply with the harsh reality they face—a reality dominated by a relentless search for employment that often ends in disappointment.
Their struggle is not isolated. Across New Zealand, nearly four in ten young people aged 15-24 are either unemployed or underemployed, a figure that has reached a 30-year high. As the country gears up for its general election in November, this issue has become a focal point for voters, particularly those aged 18-34, who rank unemployment as their second most pressing concern, just behind the cost of living.
Economic Downturn and Its Impact on Youth
The economic fallout from the Covid-19 pandemic has left deep scars on New Zealand’s economy. Recession and stagnation have led to a surge in company liquidations, with nearly 3,000 hospitality businesses ceasing operations in the past year. While there are signs of improvement, with Moody’s projecting 1.6% GDP growth in 2026, the job market remains challenging, particularly for young people.
Apprenticeship numbers have plummeted by 32% since 2022, reaching a 15-year low in 2025. Michael, a 20-year-old aspiring electrician, has applied for at least 40 entry-level jobs in the past two years without a single interview. His experience is not unique. Luta Matagi, a 23-year-old job seeker, has lost count of the number of rejections she has faced.
The Psychological Toll of Unemployment
The prolonged search for employment takes a significant toll on the mental health of young people. Shamubeel Eaqub, chief economist at Simplicity, warns that the scarring effects of unemployment can linger long after the economy recovers. “By the time the economy recovers, you’re going to be competing with the next cohort of young people who are now into the workforce,” he says.
For Matagi, the stress of unemployment is compounded by the threat of losing her car, which she relies on for job hunting. The government’s plan to tighten jobseeker benefit criteria for 18-19-year-olds from November adds another layer of anxiety. “It’s so sad to say, but the future scares me,” she admits.
Political Responses and the Road Ahead
As the election approaches, political parties are presenting their plans to address the unemployment crisis. Labour’s spokesperson for finance and economy, Barbara Edmonds, criticizes the current government’s economic management, citing the national unemployment rate, which stands at an 11-year high of 5.6%. She emphasizes the need for hope and tangible job opportunities for young people.
Labour proposes to boost trades and apprenticeships, guarantee jobs for graduate nurses, and introduce a “Future fund” to invest in innovative businesses and infrastructure. In contrast, the National party’s minister for social development and employment, Louise Upston, attributes the high unemployment rate to the previous Labour government’s fiscal policies, asserting that turning the economy around will take time.
Amid these political debates, organizations like Youth Inspire continue to support young job seekers. Zainab Ali, the organization’s chief executive, challenges the stereotype of young people being lazy or unwilling to work. “They are struggling and still going,” she says, highlighting the resilience and determination of the young people she works with.
As New Zealand prepares to vote, the plight of its young job seekers remains a critical issue, one that could shape the future of the country’s political landscape.
