Preparing for a Thriving 2025 for NZ

New Zealand’s job market has faced its share of challenges throughout 2024. With rising unemployment, a decrease in job vacancies, and fluctuating business confidence, the economic climate has been a mix of uncertainty and resilience. However, green shoots of recovery are starting to emerge, particularly in industries like technology, healthcare, and renewable energy.

Recent statistics underline these challenges. The unemployment rate has seen a slight uptick, sitting at 4.3% as of the last quarter, compared to 3.9% earlier in the year. Job vacancies have also contracted by approximately 10%, creating a tighter market for job seekers. Businesses have had to adapt, with many implementing cost-saving measures and delaying hiring plans, further contributing to a challenging environment for job seekers. Despite these hurdles, business confidence, which had hit its lowest point mid-year, has started to rebound following the Reserve Bank's announcement of a reduced Official Cash Rate (OCR) in August.

The construction sector, bolstered by government infrastructure initiatives, is expected to regain momentum in the coming months. These large-scale projects could significantly contribute to job creation and stimulate related industries. Additionally, sectors like healthcare and technology continue to see strong demand, reflecting the need for skilled workers in a post-pandemic world. This growth is expected to drive innovation and provide stability in an otherwise volatile market.

Another factor shaping the employment landscape is the cautious optimism among job seekers. Surveys indicate that over 60% of employees are open to changing roles once the market stabilises, creating opportunities for both job seekers and employers in 2025. As businesses prepare for the year ahead, investing in upskilling, aligning with market trends, and strengthening talent pipelines will be critical to navigating these challenges and capitalising on emerging opportunities.

“2024 has been a tough year across the board, but there are definitely some green shoots.”

On a recent NZ Market Update  Shannon Barlow, Managing Director of Frog Recruitment, was joined by Brooke Lord, Head of Advocacy and Policy at RCSA, to discuss the challenges and opportunities within the current job market. Their insights painted a detailed picture of the year’s complexities and offered a forward-looking perspective on what lies ahead.

Shannon Barlow candidly described the current state of the market: “2024 has been a tough year across the board, but there are definitely some green shoots. We’re seeing industries like technology and healthcare showing consistent demand, which is encouraging as we look to 2025.” She elaborated on the impact of market tightness, noting, “In this kind of market, people are looking for security. Once the market stabilises, we expect more movement and new opportunities to emerge.”

Brooke Lord added depth to the discussion by highlighting the recruitment sector's role in identifying trends and opportunities early. “Our industry acts as the canary in the coal mine,” she explained. “We’re often the first to spot trends, whether it’s in workforce demand or emerging skills like AI. Staying connected with recruitment professionals can give businesses a critical edge.” Lord’s emphasis on cross-skilling and readiness further underscored the importance of proactive workforce planning: “Hiring managers should focus on upskilling their existing workforce and building a talent pipeline to stay ahead of demand in 2025.”

The conversation also delved into sector-specific trends, particularly the construction industry. Barlow shared insights on how government initiatives could stimulate growth: “Infrastructure projects are a critical part of the government’s agenda, and we’re optimistic about the ripple effect this will have across industries in 2025.” Lord agreed, adding, “Industries such as healthcare and renewable energy have weathered the storm well and continue to grow, making them key areas of focus for hiring managers and job seekers alike.”

Another theme was the shifting priorities of job seekers. As Barlow explained, “The lack of job vacancies has made the market tougher to navigate, but we’ve seen that job seekers are increasingly prioritising stability and meaningful work. Once confidence in the market improves, we’re likely to see significant movement, which will create opportunities across the board.”

“Recruitment professionals are at the forefront of market changes and can guide businesses on where to invest in skills and talent,” said Barlow. Lord reinforced this by noting, “Our members and professionals in recruitment are uniquely positioned to identify market gaps and emerging opportunities. They’re a vital resource for businesses aiming to stay competitive.”

The discussion concluded with a shared sense of optimism for 2025. Both speakers highlighted the need for businesses and job seekers to remain adaptable and forward-thinking, ensuring they are well-positioned to leverage the opportunities that lie ahead. As Barlow aptly summarised, “It’s been a challenging year, but if we prepare now, 2025 holds immense potential for growth and recovery.”

Practical Steps for Thriving in 2025

As New Zealand’s job market begins to recover, both businesses and job seekers can take strategic steps to navigate the evolving landscape successfully:

1. Invest in Upskilling and Reskilling: With growing demand in sectors like technology and renewable energy, employers should focus on developing their workforce's technical and adaptive skills.
   
   
2. Embrace Workforce Mobility: As market conditions improve, employee movement is likely to increase. Businesses should prepare for this by offering competitive benefits and clear career progression pathways to retain top talent.
   
   
3. Leverage Emerging Opportunities: Industries such as healthcare and technology are poised for growth. Job seekers should tailor their CVs and applications to highlight relevant skills, while employers can focus on attracting talent with expertise in these fields.
   
   
4. Build Resilience Through Planning: Uncertainty will likely persist in the short term. Employers and job seekers alike should plan for contingencies, ensuring they remain flexible and responsive to market changes.
   
   
5. Tap into Recruitment Expertise: Partnering with recruitment professionals can provide invaluable insights into market trends, candidate expectations, and emerging skill requirements.

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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.