The labour market is showing further signs of weakening as unemployment rates rise further.

The nation's unemployment has now reached the highest level since September 2002.

Figures released by Statistics New Zealand today, reveal an increase of more than 10% in the number of New Zealanders out of work in the December 2008 quarter.

Stats NZ's figures show 4.6% of New Zealanders are listed as unemployed, with more women than men listed as not working.

Laura Black of the Methodist Mission says there is also 'hidden unemployment,' and official figures could top 8 percent in the coming months.