Christchurch’s unemployment rate fell to 4.3 percent in the June 2026 quarter, its lowest level since late 2023, as the local economy grew faster than the rest of the country.

The figures are contained in ChristchurchNZ’s latest quarterly economic report, which covers the three months to June and draws on data from Stats NZ, Infometrics, MBIE and the Reserve Bank.

Provisional estimates show economic activity in Christchurch and Canterbury rose 2.6 percent in the year to June 2026, more than double the national rate of 1.7 percent.

It was the fourth consecutive quarter of positive annual average GDP growth in both areas, and the fastest local growth in three years.

The city’s unemployment rate was down from 4.4 percent in the March quarter and 5.8 percent a year earlier.

Across Canterbury the rate fell to 3.6 percent, the equal lowest of any major New Zealand region. The national rate was 5.4 percent.

Online job advertisements in Canterbury were 17.9 percent higher than a year earlier, well ahead of national growth of 6.7 percent. Manufacturing, IT and other sectors led the increase, with education the only sector to record a decline.

Christchurch’s labour force participation rate slipped to 71.9 percent, down from a nine year high of 74.5 percent reached in late 2024, but still above the national rate of 70.4 percent.

Household costs continued to climb. Annual inflation accelerated to 4.1 percent in the June quarter, driven largely by higher fuel prices following the escalation of tensions in the Middle East, and remained above the Reserve Bank’s 1 to 3 percent target range for a third consecutive quarter.

The median house price in Christchurch rose 2 percent over the quarter to $725,000, up 9.8 percent on a year earlier and outpacing the national increase of 1.9 percent. Median weekly rent held at $550, equivalent to 20.4 percent of average annual household income, above the national level of 19.7 percent.

Consumer confidence in Canterbury fell 7.4 points to 83.2, remaining firmly in net pessimistic territory, although the decline was smaller than the national drop of 14.3 points.

Building activity strengthened, with residential consents in Christchurch up 34.9 percent on the June 2025 quarter and non residential consents up 34.4 percent.

Tourism was one of the quarter’s stronger performers. Almost 106,000 international visitors arrived at Christchurch Airport, 20.2 percent more than the same quarter last year and 3.6 percent above the equivalent June 2019 quarter. Average accommodation occupancy in the city was 59.2 percent, well above the national average of 46.3 percent.

Visitor card spending in Christchurch totalled $336 million, up $18.3 million on last year, with international spending rising 19.7 percent and domestic spending up 1.9 percent.

Migration into the city also lifted, with about 2,370 people arriving from overseas during the quarter, an increase of around 760 people on the same period last year.

Business conditions were more mixed. The number of business units in Canterbury grew 2.7 percent in the year to June, the strongest business unit growth of any New Zealand region and more than double the national rate of 1.2 percent.

The Performance of Manufacturing Index for Canterbury averaged 52.8, its sixth consecutive quarter in expansion, while the Performance of Services Index averaged 41.9, deep in contraction and below the national average of 47.0.

Business confidence in Canterbury averaged 16.3 for the quarter after falling 63.7 points between February and April as tensions escalated in the Middle East, before partially recovering to 38.3 in June as fuel prices eased.

Retail spending in the central city rose 0.8 percent in value, but transaction volumes fell 2.1 percent, indicating shoppers were spending more per visit rather than visiting more often. Spending by international visitors in the Four Aves rose $3.6 million, offset by falls in spending by Christchurch and Selwyn residents.

The report says the local economy appears to have been more resilient than initially feared, with several indicators strengthening over the quarter, although continued uncertainty, elevated costs and rising interest rates may create headwinds for households and businesses in the months ahead.