Apr 25
April Job Market Pulse: Stabilising Signs Amid Uncertainty
Key Insights on NZ’s Employment Market April 2025 Edition
As the new quarter begins, New Zealand’s economy shows glimmers of stability—but it’s far from business as usual. With job ads holding steady, applications surging, and business sentiment still mixed, both employers and job seekers must stay sharp and adaptable.
Signs of Stabilization but business not as usual?
New Zealand’s economy is in a cautiously optimistic phase. According to the latest ANZ Business Outlook (March 2025), business confidence dipped slightly to -24.1%, while firms’ own activity outlook held steady at +11.5%—a sign that many businesses are still planning for growth despite challenges. Inflation pressures remain elevated, with 73.3% of firms expecting higher costs, though pricing intentions have eased slightly. Sector-wise, manufacturing and construction continue to struggle with weak demand and high input costs, while services remain relatively strong. Employment and investment intentions are softening but still in positive territory, showing that businesses are staying active but cautious. With global uncertainties and a still-shaky consumer outlook, recovery is slow but steady.
Steady Job Market with a Surge in Job Seeker Activity
As we move into April, the New Zealand job market remains steady, with SEEK reporting that job ad volumes were unchanged quarter-on-quarter, marking the most stable period we’ve seen since pre-COVID. While February saw a slight 2% dip in job ads nationally—driven mainly by declines in Auckland and Otago—application volumes remain strong. SEEK data shows a 5% month-on-month increase in applications per ad in January (reported with a lag), suggesting a high level of candidate interest rolling into March. This aligns with Trade Me’s findings, which recorded a staggering 54% spike in job applications in January compared to December, with elevated activity continuing into the new year. Despite this increased competition, salaries across the board have softened slightly, with Trade Me noting a 3.6% national dip in average salaries from December to January. This suggests the job market is beginning to tilt in favour of employers, especially as migration lifts candidate volumes. Heading into April, employers are well-positioned to tap into a large and motivated candidate pool—particularly in customer service, trades, logistics, and hospitality—while job seekers may need to work harder to stand out in a more competitive landscape.
Where to from here?
There has been a noticeable sense of scepticism in the air, both among households and businesses. As highlighted in the Westpac-McDermott Miller employment survey, overall confidence fell 3.3 points to 88.3 in the three months ending March, a level not seen since the post-COVID period of 2020. With a score below 100 indicating pessimism, it’s clear that many businesses are struggling. While many companies are holding on to their existing staff, they’re less confident about covering the costs of hiring new employees. Across all media, one theme persists—the expectation that the economic landscape will begin to improve mid-2025. Despite the decline in early 2025 following the job boom from the summer period, we are nearing the end of the worst of it. Economists predict that the unemployment rate will peak at 5.3% by mid-year, before gradually starting to decrease, with the current rate sitting at 5.1%.
For businesses looking to weather this storm and prepare for the recovery ahead, flexibility in staffing is more critical than ever. At Indus Recruitment, we specialize in providing reliable, flexible staffing solutions that help you navigate these uncertain times. Whether you’re dealing with temporary roles or looking for long-term hires, we ensure you have the right talent in place when you need it most. Reach out to us today and discover how we can support your workforce needs during this challenging period and beyond.