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New Zealanders participate positively in society and reach their potential
Getting New Zealanders working
Measuring our performance
On pages 16 to 17, we outline our performance framework. This details which KPIs relate to this focus area.
See pages 18 to 25 for more information on how we are performing against our KPIs.
We are facing challenging economic circumstances, but are focused on getting and keeping New Zealanders working
It has been a tough year for the labour market due to the ongoing impacts of weak economic conditions. The financial year started with the unemployment rate at 4.7 percent in the June 2024 quarter and increased to 5.2 percent at the end of June 2025. The unemployment rate has been rising since December 2021 (where it was the lowest level on record at 3.2 percent) and is expected to remain high over 2025, which means an increasing number of people needing benefits.
Despite Jobseeker Support numbers being forecast to remain high throughout 2025, the number of people who exited Jobseeker Support into employment has increased this year (70,323 compared to 59,718 in 2023/24). Our performance around keeping people in work (people who did not access a main benefit in the six months after exiting a benefit) has also increased compared to last year.
MSD is engaging with more people, more often
We have engaged with more people, more often to work towards meeting the Jobseeker Support reduction Government Target. We have significantly increased our engagement with clients through employment-focused initiatives, including one-to-many seminars, job expos and one-to-one employment case management services. This has resulted in more job search activity, and we have seen increases in registrations of interest in jobs and referrals to jobs.
We have invested more into the employment supports that we know work, in line with our Employment Investment Framework for 2024/25. This included:
- expanding case management from a capacity of 60,000 to 70,000 people at any given time through the implementation of phone-based case management
- increasing Kōrero Mahi seminars, which saw a total attendance of approximately 70,000 people throughout the year
- implementing Community Coaching, which funded a further 2,100 places for youth job seekers to address barriers and support them into employment.
We have also been supporting people to prepare for work through our work-readiness programmes, so that when jobs become available, they are ready.
There is further investment coming through the Budget 2025 initiative, Employment Services – Investing in Frontline Staff and Employment Programmes, which was informed by evaluating the effectiveness of our programmes.
Other highlights from this year:
- We increased proactive appointment attendance this year by around 50 percent, with approximately 90,000 more appointments attended than last year.
- We strengthened our focus on supporting clients receiving a Jobseeker Support benefit through our programmes, which has resulted in an increase in Flexi-Wage and Mana in Mahi participants being Jobseeker Support recipients.
- Through our Driver Licence Support programme, participants achieved an 87 percent pass rate in obtaining a learner, restricted or full driver licence.
- We implemented Individual Employment plans for the 10,000 clients in phone-based case management and then expanded this to the full 70,000 clients in case management.
- The Pacific Work Connect Programme and Pacific Employment Action Plan Fund supported Pacific peoples to upskill, earn more, and achieve sustainable employment.
- We supported the development of a Māori business engagement strategy in the Nelson, Marlborough and West Coast region, which has seen increased connections with Māori-owned businesses in construction, roading and infrastructure.
- We implemented whānau-centred work-readiness programmes, designed specifically for Māori, which is focused on providing support such as resume production, digital literacy and financial capability in the Canterbury region.
The traffic light system was introduced, which clarifies responsibilities for those on a Jobseeker Support benefit
The first phase was introduced in August 2024 as a way for both staff and clients to understand a client’s compliance with their obligations, and to support the Jobseeker Support reduction Government Target. The Social Security Amendment Bill, which amended the Social Security Act 2018, passed in May 2025. The Bill included expanding the traffic light system to include non-financial sanctions and mandatory Jobseeker profiles, which went live on 26 May 2025.
As at 30 June 2025, the vast majority of clients were meeting their obligations. Around 98 percent of clients are on track and meeting their obligations (green status), around 1 percent are not meeting their obligations and do not have a good reason (orange status), and around 1 percent are not meeting their obligations and could have their benefit reduced or stopped (red status). These proportions have remained largely consistent since the introduction of the traffic light system.
Case study – Employment
MSD partners with businesses across New Zealand to help them find the right people for their jobs. The free recruitment service we offer includes:
- searching for candidates
- shortlisting
- arranging interviews
- connecting businesses and candidates with information and services.
MSD is committed to supporting clients into work. In 2024/25, 16,973 job seekers were placed into employment through vacancies listed with MSD, an increase of 1,721 compared to 2023/24.
An example of a small regional business that we have supported through this service is Westport’s Gibby’s Café.
The café takes pride in having launched the working careers of scores of young job seekers with the support of MSD’s recruitment service.
“I believe in investing in the younger generation for the future of our communities,” says owner, Sue Gibson, whose efforts to train young locals has helped her café become a local icon.
“Some of our young people have then gone on to management and team leader roles with other organisations,” says Sue. “It’s very satisfying to know we’ve played a part in getting them on their way.”
Sue has worked closely with MSD’s Work and Income Work Brokers over her 14 years at the café to take on young job seekers, training them for qualifications in hospitality, cooking, baking and barista skills, and helping them on their way in life.
Since January 2025, Sue has had three young, former Work and Income clients graduate with certificates in Hospitality, Food and Beverage. A fourth young person will graduate in February next year. Both the business and former clients received continued support from Work and Income after starting in their new roles.
Since graduating, one client has moved into a management training role at a large retailer, another has gone back to study while working part-time at another café, and one continues to work at Gibby’s Café mentoring others.
Sue knows firsthand that some youth struggle with low confidence and anxiety, so she focuses on building them up and instilling a solid work ethic in them.
“What we are offering to the staff we train is a dying art,” says Sue. “We cook all our food on the premises from scratch – nothing is pre-made or sourced elsewhere. I like to think we are passing these skills on to the next generation before those skills are lost.”