New Zealand's unemployment rate is 0.4 percent above Australia's, the worst result since 2012.
"We're not seeing the turning of the tide just yet."
"Although there are people who are losing jobs, [there are] not nearly as many to get back into at the moment."
National is promising a new system to impose harsher penalties for those not complying with their welfare obligations.
The unemployment rate has edged up to 3.6 percent in the three months ended June from 3.4 percent.
Wages rose at a record annual pace of 4.3 percent.
With an unemployment rate of just 3.2 percent, you would be forgiven for thinking getting a job would be a walk in the park.
The latest labour market figures will be released on Wednesday morning, with the unemployment rate expected to drop to three percent.
The latest unemployment figures are due out on Wednesday morning.