New Zealand Deputy Prime Minister and NZ First leader Winston Peters has blamed Strait of Hormuz conflict for the country's rising unemployment rate, arguing that higher fuel costs stemming from the crisis are driving up business costs and job losses.
Stats NZ figures released Wednesday showed the seasonally adjusted unemployment rate climbed to 5.6% in the June 2026 quarter, up from 5.4% in March and the highest level since March 2014.
An estimated 1,66,500 people were unemployed in the quarter, with labour market spokesperson Abby Johnston noting around 8,000 more people were in long-term unemployment than a year earlier.
The broader underutilisation rate, which also captures underemployment, rose to 13.8% from 12.9%.
Reacting to the data on X, Peters wrote: "The rise in unemployment is directly attributable to the recent conflict in the Strait of Hormuz and the resulting massive increase in fuels costs which directly affects business costs." He added: "We said at the start of this conflict that this would severely impact both inflation and unemployment."
The rise in unemployment is directly attributable to the recent conflict in the Strait of Hormuz and the resulting massive increase in fuels costs which directly affects business costs.
— Winston Peters (@winstonpeters) August 5, 2026
We said at the start of this conflict that this would severely impact both inflation and…
Peters said the figures strengthened the case for New Zealand to develop its own oil and gas reserves.
"This is more evidence of the need for New Zealand to find and own our own oil and gas that we hold in our deep-sea basins," he said, referring to NZ First's proposed $1 billion National Subsurface Development Survey announced at the party's election campaign launch.
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"Our policy to find the reserves we have and extract it, will give us fuel security and true resilience, and will stop our country being at the whim of international decisions and geopolitical influences," he added.
Finance Minister Nicola Willis said the second quarter had been "a tough one" for many employers, while pointing to government efforts to lift business confidence through fast-tracked construction projects and tourism growth.
New Zealand imports roughly 60% of its fuel via refineries dependent on crude oil that transits the Strait of Hormuz, and has faced sustained pressure on pump prices since the conflict disrupted shipping through the waterway earlier this year.
The next labour market release is due November 4, three days before the general election in the country.
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