"However, the number of people on Jobseeker Support typically increases in the December quarter as more people come on to benefits when university and other courses finish at the end of the year."
At the same time fewer people went off benefits into work as companies often reduced hiring over the holiday period, he said.
"Jobseeker numbers are expected to reduce again over the next few months, which will be reflected in the next quarterly figures."
Nationally, the number of people on benefits dropped by more than 12,000 in the year to December to 321,869 recipients - the lowest December quarter since 2008.
St Luke's vicar Rev Alex Czerwonka said the Tuesday drop in ministry based at the church had given out slightly more meals last year than in the previous three years but it was difficult to know if they had had more beneficiaries through their doors.
"We have a constant trickle of people coming to us wanting support but not all the people who come are beneficiaries or from low-socio-economic groups so it's hard to know if there's been a particular increase or decrease," he said.
A change in people's attitudes was needed to improve the city's employment situation.
"There's no shortcut or magic bullet. We need to invest in people more through skills development and education.
"Individuals and employers need to change their attitudes. For individuals, that means taking pride in their own self-worth and personal development."
New Zealand Beneficiaries and Unemployed Workers Union spokesman Miles Lacey said the national drop didn't necessarily mean people's living situations had improved. "A lot of the people who have moved into work will only be working casually or part-time so it can still be really hard for them to make ends meet," he said.
