Business closures are becoming a daily occurrence in New Zealand, with new figures showing a 26 percent surge in company liquidations across key industries.

Data from credit bureau Centrix reveals the construction sector remains under the most pressure, recording 765 closures in the past year, up 46 percent. Hospitality has also been badly affected, with 297 businesses shutting down, a 49 percent increase. Hospitality firms are now more than twice as likely to fail as the average New Zealand business.

The trend comes as unemployment climbs to 5.2 percent, the highest level since 2020. Around 158,000 people are currently out of work, while underutilisation sits at 12.8 percent.

Buy NZ Made executive director Dane Ambler said the wave of closures is devastating for owners, workers and communities.

“Every day we are seeing another Kiwi business close its doors, and that is devastating for owners, workers and communities,” Ambler said.

He added that with interest rates beginning to ease, there is now an opportunity to stabilise the economy if New Zealanders act collectively.

“But with lower interest rates providing some relief, there is also an opportunity to steady the ship if we act collectively to back local,” he said.

Ambler stressed that community driven choices can help stem the tide of closures and support long term recovery.

“The story does not end with the challenges, there is real opportunity here,” he said.

“By backing local now, New Zealanders can help businesses weather the storm, protect jobs, and lay the foundation for a stronger economy.”