Are workers now prioritising the cost of living over career progression?

As the cost of living in New Zealand continues to escalate, more individuals are finding themselves in challenging financial situations, prompting them to reassess their career priorities. According to the latest report by Stats NZ, approximately 220,900 Kiwi workers are now juggling multiple jobs in order to meet the demands of everyday expenses. This number represents an 18% increase since 2019, illustrating how economic pressures have significantly altered the employment landscape. Furthermore, about 20% of workers are considering changing jobs as a way to secure higher wages, indicating that financial security has become a driving force behind career decisions.

The rising cost of living is influencing both job seekers and employers in unexpected ways. Job seekers are increasingly prioritising stability and income over career progression, often opting for roles that provide immediate financial relief even if they do not align with their long-term goals. On the employer side, this shift means businesses are facing challenges not only in attracting talent but also in retaining individuals who may move on as soon as better-paying opportunities arise. These dynamics paint a vivid picture of a workforce focused more on financial survival than on career development.

“This unpredictability makes it challenging for businesses to invest in and retain talent, especially in temporary and contract roles.”

During Frog Recruitment’s Thrive in 2025 NZ Market Update, Managing Director Shannon Barlow, and Temporary and Contract Services Team Leader Kirsty Henegan, provided valuable insights into how the cost of living is reshaping career decisions across New Zealand.

Kirsty opened the conversation by noting that many job seekers are now willing to accept roles that are below their experience level simply to secure employment in this challenging market. She explained, “We’re definitely seeing people who have a lot of senior experience looking to take a step back or accept lower salary bands just to get a position. It’s about getting something rather than nothing, especially with fewer job opportunities compared to those seeking employment.” This shift, according to Kirsty, has led to a surge in applications, which in turn has made the hiring process longer and more complex for employers.

Shannon also addressed how these compromises can be risky for both parties involved. For employers, hiring an overqualified candidate at a lower level may seem cost-effective initially, but there are concerns about retention. As she put it, “It might be tempting to think, 'Here’s someone really experienced, willing to work for less.' But when the market turns, they may look elsewhere for a job that matches their true potential. The risk is, are they going to stick around?” This unpredictability makes it challenging for businesses to invest in and retain talent, especially in temporary and contract roles.

The conversation also delved into the long-term impact of taking temporary or lower-level roles on one’s career prospects. Kirsty pointed out that although there could be a perception that these roles might negatively impact career growth, it is largely about framing the experience correctly. “As long as you can explain why you’ve taken these short-term opportunities, it’s often understood. Instead of waiting around for the ideal role, showing that you’ve stayed active and learned new skills during tough times speaks volumes,” she said. Shannon added that while taking such opportunities may not always offer career advancement, it can introduce individuals to different areas of business that they might not have considered before, potentially even sparking new interests or pathways.

Despite the difficult economic context, both speakers were optimistic about the possibilities that could emerge from taking short-term opportunities. Kirsty noted, “Sometimes these opportunities do come from challenging moments. You might get exposure to a different area, find a new passion, or be networking with people who could help you land something in the future.” This adaptability and resilience are crucial, especially in a job market that is still in flux, much like the uncertain employment environment experienced during the pandemic.

The discussion underscored the importance of maintaining strong relationships throughout these transitions. Shannon concluded by advising job seekers, “It’s not just about finding a role that pays the bills but also about how you approach it. Don’t burn your bridges, think about long-term prospects, and be mindful of the impression you leave. You never know when the market might turn, and keeping those relationships positive is vital.”

Tips for Navigating the Cost of Living Crisis in Your Career

In the current economic climate, job seekers need to adopt strategies that balance their financial needs with long-term career goals. Here are some tips to help navigate these challenging times effectively:

1. Be Open to Temporary Roles: Although temporary or contract positions might not align perfectly with your long-term goals, they can help maintain income while avoiding gaps in your CV. These roles also provide valuable networking opportunities and exposure to different industries.
   
   
2. Highlight Transferable Skills: If you’re taking a position outside your usual field, make sure to emphasise the skills you’re gaining or applying in that role. Adaptability and resilience are attractive qualities to employers, and these experiences can showcase your ability to handle challenging situations.
   
   
3. Communicate Clearly During Interviews: Employers understand the current market challenges, so be upfront about why you are pursuing a particular role. Highlight your proactive approach to staying employed and your willingness to learn, even if it means stepping outside your comfort zone temporarily.
   
   
4. Stay Connected and Network: Whether you’re in a short-term position or actively looking, keep in touch with professionals in your industry. Networking remains one of the best ways to discover opportunities and position yourself well for when the job market starts to recover.
   
   
5. Consider Multiple Income Streams: Given the rise in living costs, it may be practical to explore additional sources of income, such as freelance work or part-time jobs that utilise your existing skills. This can provide financial relief while still allowing you to focus on your main career trajectory.

The rising cost of living has undoubtedly created hurdles for many job seekers in New Zealand. By understanding the current dynamics, adapting to temporary roles, and approaching career moves strategically, individuals can weather the storm while keeping their long-term ambitions in view.

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In business since 2002 in New Zealand, Frog Recruitment is an award-winning recruitment agency with people at our heart. Located across Auckland and Wellington, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 RCSA Excellence in Candidate Care Award, we are dedicated to helping businesses achieve success through a people-first approach.