New Zealand's employment confidence rose in the March quarter, with the Westpac-McDermott Miller Employment Confidence index rising 1.8 points to 95.6 in the said quarter from 93.8 in the December 2025 quarter, according to a Wednesday report.

The reading in the quarter, the highest reading since early 2024, was driven by an improvement in households' perceptions about current job availability. Households remain more cautious about their earnings prospects and job security.

A level below 100 indicates that a greater number of households are pessimistic about the outlook compared with those who are optimistic.

Around 46% of respondents in the survey felt that it's hard to find a job at the moment, the least negative reading since December 2024, indicating the unemployment rate may have peaked at its current level of 5.4%.

Meanwhile, 14% of households reported a rise in their earnings over the last year, while a net 22% expect an increase in their earnings in the year ahead.

Employment confidence rose in six regions and fell in five over the March quarter, with the biggest gains in confidence seen in Waikato, the East Coast, and Wellington.