Social Development Minister Louise Upston isn't worried by the increase in Kiwis relying on the benefit.

The Ministry of Social Development released numbers for the last quarter - showing nearly 205,000 people were receiving Jobseeker support, a 12.8 percent increase in a year. 

Upston says more unemployment is common during an economic downturn - but she's pleased to note more people have cancelled their benefit payments because they found work.

"I am really encouraged by the figures we've seen in the last quarter, where over 16,000 people have come off the jobseeker benefit and into jobs. That's really encouraging. So while I accept it's challenging out there, it's not impossible." 

LISTEN ABOVE