New Zealand’s job market favours employers - June 2024

Published 24 July 2024 | 2 min read

The New Zealand job market has hit a rough patch, with hiring activity experiencing a sharp decline in June. As job ads plummet and competition for available positions intensifies, the landscape is becoming increasingly challenging for jobseekers. This downturn, driven by economic pressures and significant public sector cuts, has shifted the balance of power firmly into the hands of employers.

Agony of cost-cutting

Economic uncertainties and a wave of cost-cutting measures have significantly impacted the job market. The National-led Government’s reduction of thousands of public sector roles has exacerbated the situation, further tightening the employment squeeze. As businesses grapple with economic pressures, the need to reduce expenses has led to a sharp reduction in hiring activity, particularly in key sectors such as retail, consumer products, and construction.

Employers now find themselves in a position of greater control and power, able to be more selective in their hiring processes due to the high volume of applications per job ad. This shift has created a fiercely competitive environment for jobseekers, making the search for employment more daunting than ever.

Numbers tell the tale

To fully grasp the current state of the job market, let’s delve into some key statistics from Seek NZ's Employment Report for June:

Overall decline

Job ads dropped by 8% in June compared to May, marking a 35% decrease year-on-year.

Sector-specific declines

• Advertising, Arts, and Media: -25%
• Mining, Resources, and Energy: -23%
• Retail and Consumer Products: -18%
• Trades and Services: -12%
• Healthcare and Medical: -9%
• Government and Defence: -59% over the past year
• Construction: -50% over the past year

Regional impacts

• Manawatu: -16%
• Northland: -12%
• Auckland: -8%
• Wellington: -9%
• Canterbury: -7%
• Southland: +3% (one of the few regions with an increase)

Applications per job ad:

Competition is at its highest, with applications per job ad rising across all industries year-on-year, led by:

• Retail and Consumer Products: +124%
• Call Centre and Customer Service: +97%
• Administration and Office Support: +92%
  
  

Silver lining of a challenging market

Despite the grim statistics, there are potential long-term benefits for employers in this competitive environment. With an abundance of candidates to choose from, employers have the opportunity to select the most qualified and suitable candidates for their roles. This could lead to a stronger, more capable workforce that can drive future business success.

Additionally, the increased competition among jobseekers may encourage candidates to upskill and differentiate themselves, ultimately leading to a more skilled and versatile workforce. Employers can leverage this by offering training and development opportunities to retain top talent and foster loyalty within their teams.

How can we create a strong path forward?

To navigate these challenging times, we can take several strategic steps:

1. Focus on employee development: Invest in training and development programs to enhance the skills of your existing workforce and attract high-quality candidates.
2. Enhance employer branding: Highlight your company’s strengths, values, and culture to stand out as an employer of choice in a competitive market.
3. Streamline recruitment processes: Use technology and data-driven approaches to identify the best candidates efficiently and effectively.
4. Positive work environment: Create a supportive and engaging workplace culture to retain top talent and reduce turnover.
5. Adapt to market changes: Stay agile and responsive to economic shifts, adjusting your hiring strategies as needed to maintain a competitive edge.

In these tough times, proactive and strategic approaches will be key to thriving in a rapidly changing job market -- weather the current storm and emerge stronger, with a workforce ready to tackle future challenges.