The State of Employment in New Zealand: Challenges and Green Shoots

The State of Employment in New Zealand:
Challenges and Green Shoots

The latest employment statistics in New Zealand have presented a complex picture of the labour market. The unemployment rate has climbed to a four-year high, rising from 4.8% to 5.1% in the December quarter. While such figures typically suggest a weakening job market, an interesting contrast has emerged—employment confidence has also increased, with a 2.4-point rise in the Employment Confidence Index. This unexpected optimism could indicate that businesses and job seekers alike believe the worst has passed and that the market is on the path to recovery.

Despite this, the public sector continues to face significant job cuts, creating uncertainty in government-related employment. Private sector employment, however, appears to be stabilising, offering a glimmer of hope for those looking for opportunities. With early signs of recovery already visible in 2025, there is cautious optimism that the economy is turning a corner.

“The positive, though, is that even though it’s early days for 2025, we are already starting to see improvements and green shoots across both public and private sectors.”

During a recent live stream, Frog Recruitment NZ Managing Director Shannon Barlow shared her perspective on the latest employment trends. She acknowledged the impact of rising unemployment but emphasised the increasing confidence among job seekers. “It might seem a bit weird that as unemployment increases, we’re also feeling more confident about job availability. But I think this reflects the overall increase in business confidence and that feeling that surely we must have bottomed out.”

This sentiment is crucial, as it suggests that businesses are preparing for renewed hiring activity, even in the face of economic challenges. Barlow also pointed out that while the public sector is still going through a painful period of job losses, the private sector is showing resilience. “The positive, though, is that even though it’s early days for 2025, we are already starting to see improvements and green shoots across both public and private sectors.”

Such insights highlight the importance of adaptability in today’s job market. While some industries are contracting, others are beginning to regain strength, making it essential for job seekers to remain agile and responsive to emerging opportunities.

Strategies for Navigating the Evolving Job Market

Given the current economic landscape, professionals and job seekers can take several steps to enhance their employability and career prospects:

• Upskilling and Reskilling: As industries evolve, acquiring new skills can be a game-changer. Staying ahead of technological advancements and industry trends will be crucial for long-term career success.

• Exploring Growth Sectors: While some areas, like the public sector, are experiencing cutbacks, other industries are expanding. Looking into high-demand fields, such as technology and healthcare, could open new doors.

• Strengthening Professional Networks: Building relationships within one’s industry can lead to new opportunities, mentorship, and valuable insights into job market trends.
• Remaining Open to Contract and Temporary Roles: While permanent positions may take time to increase, contract roles provide a strong entry point into growing industries and can lead to full-time opportunities.

• Adapting to Hybrid Work Environments: Many businesses are now embracing flexible work models. Being comfortable with remote and hybrid work setups can make job seekers more attractive to prospective employers.

While challenges remain in the New Zealand job market, the combination of increasing employment confidence and emerging job opportunities provides hope for the future. With the right strategies in place, professionals can navigate these shifts and position themselves for success in an evolving landscape.