First Labour Government of New Zealand - The 1938 Election

The 1938 Election

The government increased in popularity during its first term, as people felt the benefits of its policies and of economic recovery. It cannot realisticly be credited with ending the Depression in New Zealand, as most economic indicators were showing signs of improvement before the 1935 election. However government policies such as an increase in pay for relief workers, job creation and generous education policies did bring major benefits to many. Labour's share of the popular vote increased by nearly 10%, but it did not gain any new seats. While in 1935 the anti-Labour vote had been split between two major and two minor parties, by 1938 the United and Reform parties had merged into the New Zealand National Party, which was able to achieve 40.3% of the popular vote and win 25 seats. The Country and Democrat parties' share of the vote collapsed, with the Country Party losing both its seats. From this point on, New Zealand politics would be dominated by the Labour and National parties.