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Writer's pictureTalent Cluster

Analysis of New Zealand's Current Employment Market: Layoffs and Unemployment

Updated: Sep 23

The employment market in New Zealand, like many other countries, has experienced fluctuations in recent times due to global economic uncertainties, inflationary pressures, and industry-specific challenges. As businesses across sectors strive to adapt to changing market conditions, layoffs and increased unemployment have become more noticeable in certain industries. However, the overall situation remains relatively stable, with some sectors showing resilience and even growth.




Layoffs and Unemployment Data


  1. National Unemployment Rate: New Zealand's unemployment rate has remained relatively low, fluctuating between 3.4% and 4.2% over the past year, which is still better compared to the global average. However, recent signs of stress in certain sectors, such as technology, construction, and retail, indicate a potential rise in unemployment. These sectors have seen companies initiating layoffs due to over-expansion during the post-pandemic boom or facing supply chain challenges.


  2. Industry-Specific Layoffs:


    • Technology Sector: Several tech firms have recently scaled back, especially those reliant on international markets, leading to job cuts in software development, data analysis, and IT services. This has been driven by reduced global demand and cost-cutting efforts.


    • Construction and Real Estate: The construction industry, which was booming during the housing crisis, has now seen a slowdown due to rising interest rates and reduced project initiations. Layoffs have been reported in project management, architecture, and related trades.


    • Retail and Hospitality: Retail has been affected by shifts towards e-commerce and inflationary pressures, leading to staff reductions in physical stores. The hospitality industry, while rebounding from the pandemic, still faces challenges with staffing fluctuations and inconsistent demand.


  3. Regional Variations: Layoffs and unemployment impacts are more prominent in urban centers like Auckland and Wellington, where tech and corporate job markets are concentrated. Meanwhile, sectors such as agriculture, healthcare, and education in regional areas remain more stable, with some still facing talent shortages.


Job Search Advice

Despite the challenges in some sectors, New Zealand still presents opportunities for job seekers. Below are some tailored suggestions for those navigating the job market:


  1. Target Growth Industries: Focus your job search on industries currently experiencing growth or stability, such as:


    • Healthcare: There is an ongoing demand for healthcare professionals, especially nurses, aged-care workers, and medical technicians.


    • Agriculture and Horticulture: These industries are vital to New Zealand’s economy and offer stable employment opportunities, particularly in rural areas.


    • Renewable Energy: As sustainability initiatives gain traction, roles in renewable energy, such as engineering, project management, and environmental consultancy, are expanding.


    • Education and Training: Demand for teachers and education support workers remains strong, particularly in areas of early childhood and special education.


  2. Upskill and Reskill: In a competitive job market, having diverse skills can increase your employability. Consider upskilling in areas like data analysis, digital marketing, or project management. Short-term courses in these fields are often available and could make you a more attractive candidate.


  3. Networking and Visibility: In a tight job market, personal connections can be crucial. Join industry-specific groups on LinkedIn, attend networking events, and engage with professionals in your field. Employers are often more likely to hire candidates they know or who have been recommended by trusted contacts.


  4. Consider Contract or Temporary Work: Contract and freelance roles have become more common, especially in tech and creative industries. These positions might not offer long-term security but can provide a way to gain experience and build connections while awaiting a permanent opportunity.


  5. Tailor Your Applications: As competition increases, generic applications may not stand out. Tailor your CV and cover letter for each job, highlighting how your skills and experience are suited to the specific needs of the employer.


  6. Stay Open to Relocation: Consider roles in regions where demand for certain skills is higher, such as smaller towns or regions outside of the main cities. Employers in these areas may offer relocation assistance and other incentives to attract talent.


While New Zealand’s employment market has seen some turbulence, particularly in sectors like tech and construction, opportunities remain available in healthcare, agriculture, and education, among others. By focusing on growth industries, investing in upskilling, and actively networking, job seekers can improve their chances of securing employment during this period of uncertainty.

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