After navigating a challenging economic period, New Zealand has recorded a slight but significant uptick in its financial performance. The latest statistics show the economy grew by 0.7% in the final quarter of 2024, officially bringing the country out of recession after two consecutive quarters of decline. While this growth may seem modest on paper, it signals a potential turning point for the market and a welcome change for both employers and job seekers.

This improvement has been largely driven by stronger performance in key sectors like real estate, retail, accommodation, and healthcare. International tourism has made a notable comeback, boosting retail and hospitality spending. However, not all sectors are rebounding equally. Construction and media continue to experience downturns, with construction seeing the steepest drop across all industries.

Although the annual GDP figure still reflects a 1.1% decline, the quarter-on-quarter growth provides a foundation for cautious optimism. Businesses are beginning to regain confidence, and job seekers are showing renewed energy as hiring activity slowly picks up. That said, the recovery is expected to be gradual rather than explosive, more in line with a steady rebuild than a rapid post-crisis bounce.

"The big news for this week is that New Zealand is officially out of a recession."

At Frog Recruitment, the shift in the economic environment is being felt on the ground. Temporary Team Leader Kirsty Henegan shared her perspective during a recent live stream, highlighting the signs of momentum emerging in the job market.

“The big news for this week is that New Zealand is officially out of a recession with the economy growing by 0.7% in the last quarter of 2024,” said Henegan. She noted that this growth has been pushed by rebounds in real estate, retail, and accommodation—sectors closely tied to the spending habits of both locals and tourists.

The recruitment team is also seeing early indicators of recovery in job activity. “We’re definitely starting to see some of those green shoots here at Frog Recruitment,” Henegan observed. “While the growth is still slow, it is giving business a little bit more confidence. It gives job seekers a little bit more confidence, and we’re starting to feel it a little bit more.”

However, not all industries are out of the woods yet. Henegan explained that healthcare has continued to grow, but sectors like construction and media are still struggling. The imbalance highlights that while the macroeconomic data may show improvement, sector-specific challenges remain, and these differences can impact job opportunities and business hiring patterns.

Frog Recruitment has noticed that as confidence trickles back into the market, there’s a slow but steady increase in job openings. Sectors linked to tourism and exports may be among the first to benefit, with employers seeking flexible, skilled talent to support new business growth. Henegan cautioned, though, that the recovery won’t be immediate. “It may take a little bit of time. I don’t think it’s going to be as drastic as when we came out of COVID, so it is going to be a slow climb out.”

These insights underline the importance of staying connected to market changes, especially in a fluctuating climate. For businesses, this may be a time to reassess hiring strategies and prepare for increased competition for top talent. For job seekers, flexibility, and awareness of sector trends will be key to navigating the current market.

Practical Advice for Job Seekers and Employers in 2025

As the economy continues its recovery path, both employers and candidates can take proactive steps to adapt and thrive:

• Remain Agile with Hiring Strategies
  Employers should consider flexible hiring models, including temporary and contract roles, to manage changing workloads and uncertain demand. This not only offers budget control but also helps build a pipeline of skilled talent.

• Upskill for Growth Areas
  With growth seen in healthcare, retail, and tourism-related sectors, job seekers would benefit from gaining skills relevant to these industries. Short courses and certifications in customer service, health administration, or digital tools could be valuable.

• Prioritise Candidate Experience
  As competition for top talent increases, employers should focus on improving the recruitment journey. Clear communication, timely feedback, and transparent role expectations go a long way in attracting and retaining quality candidates.

• Leverage Local Talent Pools
  Employers should tap into existing local talent, including returnees and professionals seeking more stable roles, before casting wider nets. This helps support economic resilience while filling gaps with individuals already attuned to the market.

• Focus on Wellbeing and Stability
  Job seekers are prioritising roles that offer stability, work-life balance, and positive company culture. Employers that promote wellbeing and flexible work practices will stand out in a competitive hiring environment.

• Keep an Eye on Market Trends
  Staying informed about which sectors are expanding or contracting allows businesses and candidates alike to make smarter decisions. Reviewing quarterly data and watching government economic forecasts can help fine-tune job search or workforce planning strategies.

As the green shoots of economic recovery begin to surface, New Zealand’s labour market is poised for gradual but positive change. With thoughtful planning and a readiness to adapt, both employers and job seekers can position themselves for success in 2025 and beyond.