Many of those close to outgoing PM Helen Clark, say they had no idea the Labour leader was planning to step down.
Following National's election win, Clark conceded defeat and announced that she will be standing down as Labour leader.
Labour Party president Mike Williams , who says there is nothing disastrous about their defeat, says that Clark is second to none, and he had no idea she was going to stand down as leader of the party.
He says labour is still strong, and he expects it to bounce back quite rapidly.
Outgoing Auckland Central MP Judith Tizard says Clark mentioned nothing to her about leaving Labour's top job.
But she think Clark would have run it past her husband Peter, and also her parents.
Tizard says the decision is an honourable one, and Clark will go down as one of New Zealand's greatest Prime Ministers.
Clark says she's had a lot of highs and lows in politics and says it was always her intention to stand down as Labour leader if she didn't win the election.
She says there is always a certain time for a change factor, and that took Labour out with the tide.
Labour will be picking a new leader by Christmas.