Mass layoffs over the past year have added to the pool of job seekers, say 93% of New Zealand of recruiters, as many businesses grapple with the downturn in the economy.
“Despite the initial signs of economic recovery, and more rate cuts on the horizon, New Zealand’s job market is likely to remain tight in the first half of 2025, with businesses maintaining a cautious approach to hiring,” Herbst said.
“Confidence won’t bounce back overnight, but as conditions improve and the challenges around business operations begin to ease, we expect opportunities to gradually open up.
“Job seekers should remain positive, continue to sharpen their skills, and proactively position themselves to be best placed to seize new roles as the market turns.”
Recent data from Seek shows applications per job ad in November 2024 rose 32% when compared with a year ago.
Meanwhile, monthly hiring activity only rose twice last year as job ad volumes fell 22% on a yearly basis in December, albeit coming off a jobs boom during Covid-19.
On Wednesday, new labour market data from Stats NZ is expected to show unemployment rose further in the fourth quarter last year.
ANZ economists are picking the unemployment rate to have risen from 4.8% (in the third quarter of last year) to 5.1% in the last quarter of 2024.
“While the New Zealand economy appears to have bottomed out and is now recovering, the labour market is still playing catch-up to the past slowdown in activity,” ANZ economist Henry Russell said.
Herbst said for jobseekers to boost their chances, it was important to stand out.
“Tailor your applications to each role, highlighting measurable achievements that demonstrate your value and carefully aligning with the keywords in the job description,” he said.
“If you’re in between roles and pursuing your ideal fulltime position, explore temporary or contract work as an interim option. These roles not only provide income but also valuable experience, new connections, and a potential route to permanent opportunities.”
Herbst said it was vital for job seekers to focus on building their personal brand.
“Update your LinkedIn profile, polish your resume, and take advantage of networking opportunities. With many recruiters noting heightened competition among job seekers, these efforts can make a significant difference.”
But Herbst believes while the job market is challenging right now, it is also full of potential.
“There are clear opportunities for those willing to adapt and innovate,” he said.
“Embracing technology is proving to be a game-changer for recruitment teams looking to streamline processes and improve outcomes for clients and candidates alike.”
But technology alone is not the solution, he warned.
“Businesses must invest in building the skills and expertise needed to maximise the value of these tools. Addressing internal gaps, improving workforce wellbeing, and fostering a culture of resilience will be critical to success in 2025 and beyond,” he said.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
