The latest Ministry of Social Development figures show 12,916 Hawke's Bay residents claimed benefits in the three months to June 30 - 637 fewer than during the same quarter last year.
Nationally, unemployment is at its lowest rate since March 2009.
It has 0.8 per cent to 5.6 per cent year-on-year.
Statistics NZ labour market and households statistics manager Diane Ramsay said more people were moving into employment.
And although the participation rate had dropped from a peak last quarter, it was still at an "historically high level".
"The unemployment rate fell from a revised 5.9 per cent to 5.6 per cent and is the lowest it has been since the March 2009 quarter."
The Quarterly Employment Survey, released at the same time, showed jobs in construction, public administration and safety, and education and training had all jumped from the March quarter, partly offsetting a drop in agriculture, forestry and fishing jobs and a decline in retail trade and accommodation services.
Demand for workers from established businesses rose 2.3 per cent, while annual wage inflation increased 1.7 per cent compared with a 1.6 per cent rise in price inflation.
"Annual wage inflation edged up and this was driven by private-sector annual wage rate growth of 1.8 per cent influenced by the minimum wage increasing 3.6 per cent," Ms Ramsay said.
Nationally, the number of people on benefits dropped by more than 16,000 in the year to June, with figures for the quarter at their lowest level since 2008. APNZ
