The number of beneficiaries decreased by nearly 10,000 during February, but the Government says the impact from the Christchurch earthquake is yet to hit.
Social Development Minister Paula Bennett said today the number of people receiving benefits stood at 344,060, down from 354,058 in January.
"Over February, the number of people on an unemployment benefit fell by 3779 and young people account for half of that decline," Ms Bennett said.
The number of people on an unemployment benefit dropped from 68,087 to 64,308.
However, Ms Bennett said the Christchurch earthquake was yet to affect the figures.
"The Government's support package has bought some time for employers and individuals to determine what the future holds," Ms Bennett said.
"We have to be prepared for an increase in benefit numbers as a result of the earthquake, that's just a reality. But it's good to see so many employers are accessing support to keep their staff in work."
