Key Insights on NZ’s Employment Market for 2025

The last quarter of 2024 can only be described as unsettling for businesses. It was an eerie period, with many waiting for the usual “Christmas Chaos” that never came. What we can take away from this is that consumers have adopted a more cautious approach to their finances—and rightfully so.

The Consumer Price Index (CPI), which measures changes in the cost of goods, showed a modest 0.6% rise. While this might not seem significant, the details tell a different story:

• Payments to local authorities accounted for half of the increase.
• Consumers paid 12% more to local authorities.
• The cost of vegetables rose by 8.4%, and pharmaceuticals saw a staggering 17% increase.

Despite these challenges, consumer spending rebounded in late December, just when businesses needed it most. Many retailers celebrated record-breaking sales, with Boxing Day and Christmas Eve emerging as the highest-earning days of the year. At its peak on Christmas Eve, over 600,000 transactions were processed in a single hour—that’s an incredible 10,000 transactions per minute!

To summarize, while 2024 was tough for everyone, the Christmas season ended it on a high note, leaving businesses with some much-needed relief.

The end-of-year spending was a welcome relief, but can we expect the economic and employment climate to keep improving?

Last month, the December issue of the ANZ-Roy Morgan Consumer Confidence Survey broke 100 points—a crucial milestone, as anything below this indicates economic pessimism. There is growing confidence among consumers that now might be a good time for significant household purchases. However, on the flip side, many remain pessimistic about their personal finances.

The employment market tells a mixed story:

• The unemployment rate rose from 4.6% to 4.8% compared to the previous quarter.
• However, the average salary and wage rate increased by 3.8%, suggesting existing employees are taking on more responsibilities as businesses slow new hiring.

This trend is expected to persist into early 2025, with fewer opportunities for job seekers and a challenging employment landscape overall.

Amid worsening economic conditions, more Kiwis are looking outward for opportunities. Shay Peters, CEO of recruitment firm Robert Walters, highlights this trend:

“It’s no secret that the job market in New Zealand is pretty dire currently. The fact of the matter is, there just aren’t enough job prospects and opportunities to keep people here. As a result, we’ve observed a significant rise in the number of Kiwi applicants looking to relocate, particularly to Australia.”

However, there is hope on the horizon for the second half of 2025. As interest rates gradually decrease, sectors like production, manufacturing, and retail are expected to benefit most from renewed growth. Economists predict that as businesses start gaining momentum, the demand for workers will rise again.

At Indus, we’re here to help you and your business succeed when this exceptional period arrives. The candidate market is currently rich with talent, making this the perfect time to secure highly skilled professionals for your team.

Get in touch with us today to find the right people for your roles!