Social Development Minister Paula Bennett yesterday issued statistics showing the number of people on the dole rose by about 2000 in June.
"We knew recovering from a recession would be a bumpy road, but there are pockets of success," she said.
Auckland and Wellington fared well in June with the numbers on benefits dropping 2.9 percent and 1.4 percent respectively, she said.
"Hit first and worst, cities tend to recover first too."
Ms Bennett said the increase in dole numbers was expected, and was largely due to seasonal work coming to an end.
Labour's welfare spokeswoman, Annette King, said Ms Bennett was creating a false dawn.
"Figures showing that the number of Kiwis now claiming the unemployment benefit has climbed 3 percent to 62,085 in June alone show her government's economic policies are not working," Ms King said.
"These ugly unemployment figures come one day after the BNZ's bleak business confidence survey...in contrast, business confidence across the Tasman continues to grow and Australia added 45,900 jobs in June alone."
