The Labour Party says the government is in denial about the damage it has done to New Zealand's economy, after the latest job market figures.
Unemployment has risen to its highest level in more than a decade, with more people chasing work than jobs created, while wage growth slows further.
Stats NZ numbers showed the unemployment rate rising to 5.4 percent in the three months ended December, from 5.3 percent in the previous quarter.
It was the highest level since March 2015 and worse than forecast by economists and the Reserve Bank.
Finance Minister Nicola Willis said while she would prefer the unemployment rate was lower, the underlying details were positive.
"We are working very hard to get unemployment to come down. What is positive to see is that 15,000 more jobs were created in the past three months, that the hours people are working are increasing, that more people are feeling optimistic about getting a job, so are entering that workforce.
"So that's really positive to see and what economists are interpreting that data to mean is that we are getting that stabilization and recovery in the economy."
'Incredibly embarrassing' - Labour
Labour leader Chris Hipkins said the latest unemployment figures were an indictment on the coalition.
"I don't think the government can spin their way out of this. They've been saying for over a year now that unemployment had peaked and that things were getting better, that there were green shoots in the economy, and for so many New Zealand families, things have continued to get worse.
"These are real people with real lives that cannot find work when they need it. Christopher Luxon, Nicola Willis, the whole government need to own up to the fact that they are making things worse, not better.
"This is incredibly embarrassing for Nicola Willis, but it's worse for the families who can't find work when they need it."
Green Party co-leader Marama Davidson said the figures showed the three party coalition was a "government of despair".
"There are more people without jobs and without income now, under this government, than at any time in over ten years.
"Food banks are overwhelmed. Homelessness is everywhere.
"Those who are fortunate enough to have jobs still have it tough. Groceries and bills continue to rise ahead of wages for many workers," Davidson said.
"A just government would be fighting to make sure everyone had the means to have a good job, food on the table, and a safe place to call home."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
