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Published 18 April 2023 | 3 min read
Record high salaries in NZ despite recession - what's driving the boom?
In the midst of global economic uncertainty, New Zealand’s job market has managed to remain relatively stable. However, this can be a double-edged sword. While it’s great that salaries are continuing to rise and job listings are still relatively high, there’s a risk that businesses may become complacent and fail to plan for potential future challenges.
Trade Me Jobs data shows that New Zealand produced another record average salary in Q1 2023, coming in at $68,316. While it’s excellent news that Kiwi paychecks are still increasing despite the recession, businesses must remain vigilant and take proactive steps to ensure they remain successful in the long run.
One example of a business that has struggled due to complacency is a small café in Auckland. The café had a steady stream of customers and a loyal following, so the owner never felt the need to invest in marketing or expanding the business. However, when the COVID-19 pandemic hit and the country went into lockdown, the café was unable to survive without additional revenue streams. The owner was forced to shut the business down, leaving several employees without work.
What should business leaders be thinking about?
While rising salaries and job listings are great news, businesses need to think beyond short-term success and plan for potential future challenges. One way to do this is by investing in upskilling and training employees to ensure they have the skills needed to adapt to changing economic conditions.
Upskilling employees not only benefits businesses in the long run, but it also benefits employees. According to the Trade Me Jobs data, the largest average salary increases in Q1 were seen in the South Island. This is due in part to a reaction to the cost of living crisis and the increase in the minimum wage. However, it’s also due to the fact that employers had to lift their game to attract quality workers. By investing in upskilling and training employees, businesses can attract and retain quality workers, leading to long-term success for both the business and its employees.
Businesses can invest in upskilling and training employees in several ways. One way is by providing on-the-job training and mentorship programs. Another is by offering courses and training opportunities outside of the workplace, such as online courses or industry-specific workshops. By investing in their employees, businesses can ensure that they have the skills needed to adapt to changing economic conditions and remain successful in the long run. Additionally, businesses should be proactive in planning for potential future challenges, such as economic downturns or technological advancements, to ensure they remain competitive in the long run.
Key takeaways:
- The New Zealand job market started 2023 strong with record high salaries and a surprising number of job listings.
- The average salary in Q1 2023 was $68,316, which is a record high and a significant increase from the previous year.
- Despite the recession, job listings were down only 7% compared to the same period in 2019.
- Salaries are shooting up across the board, with the largest average salary increases seen in the South Island.
- IT continues to command the highest salaries out of any sector, although the average salary has dropped slightly from the previous year.
- The number of people applying for vacant roles has dramatically increased, with average applications per listing up 83% year-on-year.
- There has been a 269% increase in the number of job listings with "work from home" in the description since Q1 2019, before flexible working became part of our vocabulary.
- Employers are embracing flexible working, which is reflected in the increase in job listings with "work from home" in the description and the higher average salaries associated with those roles.
Overall, the New Zealand job market is in pretty good shape considering the macroeconomic conditions at play, and there are plenty of opportunities for job seekers in a variety of sectors.
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