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Opposition parties and trade unions are blaming the government for the sharp rise in unemployment reported today in the Household Labour Force Survey.
Unemployment rose 19,000 during the June quarter to reach 159,000, an increase from 6% to 6.8% which was higher than economists had predicted.
Labour leader Phil Goff said the figures were a tragedy for those who had lost their jobs.
"This is more evidence that the government's economic policies are failing," he said.
"Kiwis have had enough of gimmicks like the Jobs Summit and the cycleway - they want action from the government to get them back into work."
Goff said the government didn't have a plan to deal with the situation and further inaction would mean prolonged uncertainty over the jobs market.
Green Party co-leader Metiria Turei said the figures were a stark reminder that the government's policies were taking New Zealand in the wrong direction, and the Council of Trade Unions (CTU) said there was a sense that the economy was stalling.
"The figure of 6.8% shows that the recession is not over for many," said CTU secretary Peter Conway.
"The government is far too complacent about this - jobs are at the heart of any economic recovery."
Conway called on the government to step up assistance for unemployed people by expanding its employment programmes and bringing forward job-rich infrastructure spending.
Volatile times
Statistics New Zealand (SNZ), who conducts the quarterly survey with 15,000 households throughout New Zealand, said the rise indicates a period of volatility in the labour market.
"The labour market is still adjusting to the changing economic climate," said Peter Gardiner, SNZ manager of labour market statistics Peter Gardiner.
The rise in unemployment during the three months to June was marked by an increase in unemployed males said SNZ.
They also noted that the rise this quarter was largely unexpected and the recent volatility in unemployment estimates is making it more difficult to interpret the results.
In the last year, growth in the working-age population has out-stripped employment growth.
This, coupled with relatively high and stable labour force participation during the year has kept unemployment up.
Employment decreased by 6,000 during the June 2010 quarter, following a 21,000 increase last quarter.
Part-time work fell, while full-time employment rose. Consistent with the rise in full-time work, both usual and actual hours worked increased during the quarter, indicating that those in work are working more hours.
Employment Minister Paula Bennett said the latest rate was lower than the 7.1% recorded in December.
"The fact is that we still have too many people out of work and that's where our focus remains," she said.
"We always knew it would be a bumpy road to recovery post-recession and it is, but an overall picture is emerging of a very slow, steady recovery."
Bennett said the trend showed that since December there were 5000 fewer people unemployed and an extra 15,000 people in work.
