Support services in the Far North are warning that rising unemployment is pushing more families into extreme hardship, as the region grapples with the country's highest jobless rate.

The latest statistics suggested that unemployment had risen to its highest rate in more than a decade.

Northland had overtaken Auckland as the region recording the highest unemployment at 8.8 percent, up from 5.1 percent.

Those working on the frontline said rising joblessness was leading to growing demand for food assistance, worsening mental health and increasing family violence.

Ngāpuhi Iwi Social Services chief executive Moana Eruera said her organisation had seen a significant increase in families seeking help for unemployment combined with rising living costs.

The organisation's social supermarket, Whata Kai, received 181 referrals in July alone as more families sought help with food, rent, power bills and other essentials.

Eruera said the Far North's rural geography compounded financial pressures, with many residents travelling long distances to access supermarkets, health services and other necessities.

She said financial hardship often had wider social consequences.

"When there's that kind of financial stress on families, you often see an increase in the factors that contribute to family harm."

The organisation's family violence teams were already under significant pressure.

"They are very busy supporting whānau."

Eruera said demand for food support continued to grow despite funding becoming harder to secure.

While the social supermarket operates in partnership with Foodstuffs, she said it receives no direct government funding and relied on the organisation's own investment alongside philanthropic support.

"The demand is growing, and we hope we can sustain the level of service we're able to provide."

'There are no jobs'

The director of community advocacy organisation Nga Taonga o Kaikohe, Megan Hepi, estimated between 7500 and 8000 people across Northland were currently looking for work, while only about 600 to 700 vacancies were available across the region.

She said the situation was expected to worsen following the closure of the Juken timber mill near Kaitaia, with dozens of workers expected to lose their jobs.

"Those are the entry-level jobs our rangatahi can get into."

She said young people were being hit particularly hard, with many leaving the region in search of work.

"Even my own son was ready to work. His employer had to shut down because they couldn't afford the rising costs, and he's now moved to Auckland to find full-time employment."

Hepi said many people receiving support wanted to work but simply could not find employment.

"You can't train your way out of unemployment when there are more people looking for work than there are jobs," she said.

"If every unemployed person went into study tomorrow and graduated, there still wouldn't be enough jobs for them."

She said increasing pressure on people already struggling financially was taking a toll on their wellbeing.

"People are struggling. They're depressed. We're seeing more mental health issues because of the financial pressure."

Hepi said Northland needed more jobs rather than more training programmes.

"We have people here with a lot of skill, but when there are only a handful of businesses employing people ... Everyone can't work at New World."

She believed solutions needed to come from within the region, including creating more small businesses and relocating some government jobs north.

"I can't see it getting better unless we all come together and think strategically about how to grow the economy here. We need solutions from the ground here instead of people in Wellington trying to dictate them for us."