As New Zealand’s job market continues to evolve, salary trends remain a crucial point of discussion for both employers and job seekers. With job listings declining across the country, salaries have reached record highs despite fewer opportunities being advertised. Recent data indicates that the average advertised salary across the top three regions—Auckland, Wellington, and the West Coast—sits between NZD 75,000 and NZD 76,000, showing a relatively stable salary range across key locations.

However, job listings have experienced a significant downturn, with a 35% decrease nationwide and a staggering 45% drop in Auckland year-on-year. Despite this, there are positive signs in business and consumer confidence, particularly in Auckland, where hiring activity is expected to stabilise rather than continue its sharp decline. While the labour market remains tight, select industries—such as architecture, IT, and property—have seen salary increases of up to 7%, reflecting the demand for specialised skills in these fields.

With hiring slowing but salaries maintaining upward momentum, both employers and job seekers must adapt their strategies to navigate these shifting conditions effectively.

“Salaries have hit a record high despite fewer job listings.”

During a recent live stream, Mark Smith, Principal Consultant at Frog Recruitment, discussed the state of the job market and the challenges facing salary negotiations in 2025. He highlighted the disparities between job availability and salary expectations, as well as emerging trends in job applications and hiring practices.

“New Zealand salaries have hit a record high despite fewer job listings,” Smith stated, emphasising that while the market may appear challenging, wages continue to grow in certain sectors. He noted that the job market had seen a marked slowdown but appeared to be stabilising after a sharp decline in 2024.

One of the key factors influencing salary trends is job application rates across different industries. Smith shared insights from job board data, noting, “We’re seeing significant differences across sectors—retail and customer service averaging around 55 applications per job, while hospitality sits at 44. Construction, however, is much higher.” These numbers reflect varying levels of competition in different fields, with some industries remaining highly sought after despite the broader market downturn.

While many businesses are hesitant to expand their hiring efforts, certain industries have seen notable salary increases. “The biggest pay rises we’re seeing are in architecture, up 7%, IT up 5%, and property increasing by 5.3%,” Smith shared. This suggests that despite overall cautious hiring, specialised roles are still commanding higher wages.

Another crucial factor affecting the job market is business and consumer confidence. With confidence levels in Auckland showing a strong rebound, job market churn is expected to increase, leading to more movement between roles. Smith explained that as confidence grows, job seekers are more likely to explore new opportunities, potentially influencing hiring trends in the months ahead.

Strategies for Navigating Salary Negotiations in 2025

With job seekers facing a competitive market and employers tightening their hiring budgets, effective negotiation strategies are essential. Here are key approaches to consider when navigating salary discussions in the current climate:

• Know Your Market Value
  Research industry salary benchmarks to understand where your skills and experience fit within the current job market. Be prepared with data to support your salary expectations, particularly in high-demand sectors like IT and property.

• Leverage Non-Monetary Benefits
  With some businesses unable to offer significant salary increases, consider negotiating for additional perks such as flexible working arrangements, professional development opportunities, or additional leave entitlements.

• Highlight In-Demand Skills
  Employers are willing to pay more for specialised expertise. Upskilling in areas with high demand—such as AI, digital transformation, and technical roles—can strengthen your negotiating position.

• Demonstrate Business Impact
  Employers are more likely to approve salary increases when they see direct value. Prepare clear examples of how your contributions have positively impacted business performance, efficiency, or revenue growth.

• Be Open to Timing Adjustments
  If an immediate salary increase isn’t possible, negotiate for a future review date. Some businesses may be willing to agree to a structured increase after a set period or upon achieving key performance indicators.

• Consider Long-Term Stability
  With job market fluctuations, job security is becoming increasingly valuable. Weigh the benefits of a stable role with growth opportunities versus chasing the highest immediate salary offer.

New Zealand’s employment landscape is shifting, but opportunities remain for those who adapt

strategically. Whether you’re a job seeker aiming for the best possible offer or an employer navigating hiring challenges, staying informed and flexible will be key to success in 2025.