Fewer people are on the dole than at the start of the year, but Social Development Minister Paula Bennett is warning numbers may rise again when seasonal work drops off.
The number of people receiving the unemployment benefit has dropped by about 8000 over February (4224) and March (3934).
In total, almost 325,000 people are on a benefit, of which 60,000 are drawing the unemployment benefit.
Ms Bennett acknowledges part of the decrease is attributed to students returning to study and people taking on seasonal work.
The minister expects benefit numbers to fluctuate over the next 12 months, but says there has been an increase in available jobs, with Work and income listing more than 6000 positions, and overall the emerging trend is positive.
Ms Bennett says in March, the total number of people on a benefit dropped by more than 11,000. This included 1100 people moving off the Domestic Purposes Benefit and into work.
Labour, union sceptical
The Labour Party says it is unclear from government figures just how big a change there has been in benefit numbers.
Social Development spokesperson Annette King says students returning to study will be a factor and Ms Bennett needs to release all the monthly figures so people can see whether real progress is being made.
For example, with the sickness and invalids benefits, Ms King says it is unclear whether people have moved from one benefit to the other.
The Council of Trade Unions says the Government may cut its spending on finding people jobs, following a drop in the number of unemployment beneficiaries.
CTU economist Bill Rosenberg says most of the decrease comes from students returning to study and it is too early to tell if more employers are hiring.
Dr Rosenberg says several initiatives run by Work and Income will soon lose their funding, including the Job Opportunities Scheme that subsidises the wages of employees. He believes the funding must continue.
