More than 1000 people went on to the dole last month.
Social Development and Employment Minister Paula Bennett announced today that the number of people on all benefits rose by 0.4 percent to 354,058, with a new 1003 people on the unemployment benefit.
"The numbers may not be as we'd like, but it is an honest picture. What this government will not do, is simply transfer people from benefit to benefit to hide the figures," Ms Bennett said.
"We'd all like to see fewer New Zealanders relying on welfare, that will happen as the economy slowly recovers, but it's a long haul."
Ms Bennett said there were also positive signs in January's figures, including that 3782 unemployment beneficiaries went off welfare into work.
Among those, 1849 were Maori and 354 were Pacific Islanders, she said.
However, Labour MP Jacinda Ardern said the figures were not good enough, and that the Government was making excuses rather than acting to create jobs.
"Unemployed New Zealanders desperately want to work, but after more than two years of a National government, instead of jobs, all they have been offered are excuses and gimmicks," Ms Ardern said.
"It's time the Government got off the sidelines. Active economic management, investment in education, skills and trade training, and a focus on job creation, would make the difference kiwis need - this government just won't deliver it."
NZPA