Shay Peters of the Robert Walters recruitment agency has shared his expert predictions for New Zealand's job market in 2025. Photo / 123rf
Shay Peters of the Robert Walters recruitment agency has shared his expert predictions for New Zealand's job market in 2025. Photo / 123rf
New Zealand’s job market faces significant potential challenges in the new year, including rising unemployment or increased emigration to Australia.
Robert Walters Australia-New Zealand chief executive Shay Peters has made his top predictions for New Zealand’s job market for 2025, and it features some familiar suspects.
Peters believes the jobmarket is poised for a “period of transformation”, with a few key trends that employers and employees need to look out for.
Relocating talent and skills shortage
It’s no secret that a large number of Kiwis are heading across the ditch.
Peters said his Australian recruitment offices have seen an unprecedented level of job inquiries from New Zealand applicants.
He expects that level to continue to grow in 2025.
"This is a concerning trend which could impact the country for many years, as it stands to lose a substantial number of highly skilled individuals, potentially for the long term.”
Robert Walters Australia-New Zealand chief executive Shay Peters.
The shortage of talented, skilled workers in New Zealand has been an issue that’s tough to solve.
Immigration settings have played a key part in determining who can work on our shores, but fostering the talent we have domestically needs to be a priority.
Peters believes that employers will need to get creative in how they source talent in the year ahead.
“In addition to recruiting from a broader talent pool, businesses will need to invest in upskilling and reskilling their existing workforce to stay competitive.
“This approach will help to address skill shortages while also fostering employee loyalty and growth.”
One solution could be to consider more remote opportunities within the workforce, due to the diminishing pool of qualified candidates available in New Zealand.
Skills for a new generation
With the ever-growing influence of artificial intelligence on the job economy, Peters believes it could have a profound impact on the types of work available.
Robert Walters expects sectors such as IT, finance, and engineering to see significant growth in demand for skilled professionals who can work with this new technology.
Alongside this, employees who are able to use these new AI tools as part of their daily work will be in demand.
But according to research undertaken by Robert Walters which surveyed more than 2000 professionals, 96% of respondents considered soft skills to be as important, if not more so, than hard skills.
Soft skills include areas such as communication, emotional intelligence, problem-solving, and adaptability.
“As the workplace becomes more automated and tech-driven, employers are placing a higher value on qualities like emotional intelligence, and collaboration,” Peters added.
“AI may replace technical tasks, but roles requiring stakeholder management, communication, influence, and the ability to complement AI will remain in high demand.”
This sentiment is supported by employers, with 92% saying that they have rejected candidates due to insufficient soft skills.
While those soft skills will be key for new employees entering the workforce, many in Gen Z don’t see a future in management roles.
Only 11% of professional respondents said that career progression is a top priority for them, with added pressures for low rewards not enticing for those climbing the corporate ladder.
Peters said that many industries are struggling to find qualified mid-senior level managers and executives.
“The increasing complexity of management roles, especially in hybrid and remote environments, as well as inter-generational differences is making it more difficult to find people wanting to be managers.”
He believes businesses will need to invest in leadership development internally to fill these critical roles.
Above all, ongoing economic and geopolitical uncertainty will have a big influence on decisions made by employers and employees in 2025.
Many businesses learned during the Covid-19 pandemic that adaptability is key to success, and Peters thinks there will be a rise in the contingent labour workforce to meet the need.
“As we move into 2025, the ability to adapt, learn, and embrace innovation will be critical for both employers and jobseekers.”
“The future of work in New Zealand is evolving, and those who stay ahead of the curve will be best positioned for success.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
