The unemployment rate in New Zealand has hit 5.3 per cent.

Stats NZ says in the September 2020 quarter, the seasonally adjusted number of unemployed people rose by 37,000 to reach 151,000, as the impact of COVID-19 hit the labour market.

This 37,000 rise is the largest quarterly rise in unemployment since the series began in 1986.

Stats NZ says the next largest rise in a single quarter was recorded in the June 2009 quarter during the global financial crisis, when the number of unemployed people rose by 18,000.

'We are continuing to see the economic effects of COVID-19, and its associated border and business closures,” labour market and household statistics senior manager Sean Broughton says.

'151,000 is the highest number of unemployed people we have seen in eight years.”

Biggest quarterly growth also observed for unemployment rate

The unemployment rate rose from 4.0 per cent to 5.3 per cent in the September 2020 quarter. This is the biggest quarterly increase on record.

'Last quarter's low unemployment rate of 4.0 percent was explained in part by people's inability to be ‘actively seeking' and available for work during the national lockdown that was in place for much of the quarter.

"This quarter's increase in unemployment reflects a return to more normal job-hunting behaviours."

COVID-19 lockdown has widespread effects on labour market has more about last quarter's labour market.

Over the September 2020 quarter, unemployment rates for men and women increased by similar amounts, with the women's rate up to 5.8 percent and the men's rate up to 4.8 per cent.