Prime Minister John Key is cautiously optimistic about the latest Household Labour Force Survey figures which show the largest fall in unemployment on record in the March quarter.
The number of people unemployed dropped by 25,000 or 15.1 percent, seasonally adjusted, to 140,000 in the March quarter from the preceding three months.
"I think it's very pleasing news because it means more New Zealanders are back in work," Mr Key said today.
"I would hasten to add that I think there is always volatility in the Household Labour Force Survey number, and so it may well be the 7.3 percent number (last quarter's rate -- later adjusted to 7.1) was a bit high, and it could well be that the 6 percent number technically is a bit low.
"But what we do know is that the trend is going in the right direction -- unemployment is falling."
Mr Key said it also showed government policies were working and "we haven't blown the bank by having an enormous budget deficit relative to other countries". There was still a lot of work to be done, he said.
The figures represent a swell in the workforce of 22,000 people.
Social Development, Employment and Youth Minister Paula Bennett said she was "thrilled" with the figures but also accepted there was a long way to go.
The number of unemployed young people fell by 6500 over the last quarter to 66,300.
Unemployment among Maori and Pacific island people was still high and was an area which needed attention, Ms Bennett said.
New Zealand's 6 percent unemployment rate compares to Britain's 7.8 percent, Australia's 5.3 percent, Canada's 8.2 percent and Ireland's 13.1 percent.
