There are nearly 13,000 fewer people on welfare compared to a year ago, Social Development Minister Anne Tolley says.
The latest figures showed 309,145 people, or 11 per cent of the working-age population, were receiving a benefit at the end of December.
This was the lowest number of people on welfare for a December quarter since 2008.
The biggest changes were in the drop in people receiving Jobseeker Support and Sole Parent Support - around 5500 fewer for each of these categories.
Ms Tolley said the number of people on Jobseeker Support had been steadily falling since 2010, after which Government has passed two rounds of welfare reforms.