The number of people receiving a government benefit has fallen for the fourth month in a row.
In May, the number of beneficiaries dropped by 2295 to 328,043.
Social Development Minister Paula Bennett says government policy changes designed to encourage more people to return to work and increasing business confidence have made a real difference.
However, she says overall improvements are coming in small steps.
The number of people on the unemployment benefit is 57,058, which is down by 3000 over the past year.
The Government says 5000 people have had the benefit cancelled over the past year due to changes to the rules.
As part of the Future Focus package, people on the dole have to reapply for the benefit after receiving it for one year.
Ms Bennett says as a result of the change, 2600 did not reapply for the benefit, 1400 said they had found work and more than 1000 were no longer eligible.
The Government wants fewer people reliant on benefits and its focus remains on preparing people for work, she says.
