New Zealand’s unemployment rate has climbed to 5.7 percent, sparking a fierce political clash between National and Labour just days before the general election.

The latest Stats NZ figures show 174,000 people were unemployed in the September quarter, an increase of 3,000 from the previous three months.

The rate has risen from 3.9 percent when Labour left office in 2023.

Labour finance and economy spokesperson Barbara Edmonds blamed Prime Minister Christopher Luxon’s economic management.

“Three years of Christopher Luxon’s leadership and he’s made everything worse. His last chance to show his plan was working has come and gone, and Kiwis are paying the price.”

The figures show 91,000 young people were not in employment, education or training, while unemployment among Māori reached 10.9 percent and 11.5 percent for Pacific peoples.

Edmonds accused the Government of cutting public services and cancelling projects at the expense of workers and businesses.

“National chose cuts over investment, cancelled projects and left businesses to fend for themselves. The result is fewer jobs, less opportunity and more families under pressure.”

Labour has promised to boost employment through housing construction, school improvements and hospital repairs.

National finance spokesperson Nicola Willis defended the Government’s record, pointing to high oil prices and uncertainty surrounding Saturday’s election.

“The economy is strengthening but businesses have been understandably cautious about employing more people while oil prices remain high and the outcome of the New Zealand election remains unknown.”

Willis said National’s economic programme, including Fast-track approvals, Investment Boost and trade agreements, would encourage businesses to invest and hire.

She cited Treasury forecasts of 220,000 additional jobs and said 37 approved Fast-track projects were expected to support around 70,000 jobs.

Those figures are projections rather than jobs already created.

Willis also warned that a Labour-led coalition would undermine the recovery.

“Good intentions are not a substitute for competence. Unemployment will rise if a Labour, Greens, Te Pāti Māori, Opportunity government gets the chance to increase borrowing and taxation and put more obstacles in the path of Kiwi businesses.”

Despite the rise in unemployment, the number of people in employment was 0.7 percent higher than a year earlier.

However, the employment rate fell to 66.4 percent, while the broader underutilisation rate remained at 13.8 percent.

Annual wage inflation was 2.1 percent.

The latest figures come as both major parties make their final appeals to voters ahead of Saturday’s election.