The New Zealand job market has faced various challenges in 2024, from rising unemployment rates to shifts in workforce expectations and economic volatility. As we approach the final quarter of the year, many businesses and job seekers are looking for stability and clear indications of what to expect in the coming months. Understanding the trends and forces at play can help companies make informed hiring decisions, and workers position themselves advantageously in a competitive job market.
In this article, we’ll explore the key trends shaping the New Zealand employment market in the last quarter of 2024, the sectors likely to experience growth, and the potential obstacles to watch out for. From a rise in demand for specific skill sets to the evolving role of hybrid work models, there are numerous factors that will influence employment outcomes in the months ahead.
A Challenging Year for the Labour Market
The New Zealand economy has been navigating a bumpy road throughout 2024. The first three quarters saw a fluctuating unemployment rate, partly due to external economic pressures and shifts in global markets. With the Reserve Bank’s monetary policy tightening earlier in the year, many industries faced a slowdown, resulting in hiring freezes and cautious approaches to workforce expansion. Moreover, inflation concerns led to increased living costs, impacting consumer spending and business profitability.
However, as we enter the last quarter of 2024, there are some encouraging signs of recovery. The Government has recently rolled out new economic incentives aimed at stimulating job creation, particularly within the SME (small and medium-sized enterprises) sector. While this doesn’t negate the existing challenges, it does suggest a potential uptick in hiring activity, especially in regions like Wellington and Auckland, which have shown resilience amid the economic turbulence.
Key Sectors to Watch
1. Technology and Digital Services
The technology sector continues to be a bright spot in New Zealand’s employment landscape. With the digital transformation accelerated by the pandemic, companies are increasingly seeking tech talent to drive innovation and maintain competitive advantages. Skills in software development, cybersecurity, data analytics, and digital marketing remain in high demand. Companies are also exploring AI and automation to streamline operations, further boosting the need for skilled professionals in this field.
2. Health and Aged Care
New Zealand’s ageing population and ongoing healthcare needs have made the health and aged care sectors critical areas for growth. The demand for healthcare professionals, including nurses, aged care workers, and support staff, is expected to increase as the year closes. With the Government prioritising healthcare funding, there will likely be new opportunities emerging for both skilled and entry-level workers in this sector.
3. Construction and Infrastructure
Despite a slowdown in residential construction, the infrastructure sector remains buoyant, supported by ongoing public investment in major projects. Roles in project management, engineering, and trades are expected to be in steady demand as construction companies look to meet the deadlines of key infrastructure initiatives. This sector could provide much-needed employment stability in the final quarter, especially in regions with significant development plans.
4. Business Support and Administration
With businesses focusing on efficiency and cost management, there is a renewed interest in roles related to business support, finance, and administration. Candidates with experience in financial planning, project coordination, and general administration are well-positioned to find opportunities in this space. Furthermore, as companies seek to optimise operations, there may be an increased demand for professionals skilled in change management and organisational restructuring.
Trends Shaping the Fourth Quarter
1. The Continued Rise of Hybrid Work
Hybrid work has become a norm in New Zealand, but it’s evolving in response to new employee expectations and business needs. While many companies adopted hybrid models out of necessity during the pandemic, the last quarter of 2024 is seeing organisations refine these models to strike a better balance between flexibility and productivity. Businesses are expected to invest in technology and tools that support seamless remote collaboration, while also reevaluating their physical office spaces.
For job seekers, this means having the skills to work effectively in hybrid environments will be a key differentiator. Being adaptable and tech-savvy, with strong communication skills, will be essential for those looking to secure roles that offer flexibility.
2. Focus on Employee Wellbeing and Retention
Another trend that’s gaining traction is the focus on employee wellbeing and retention strategies. With the “Great Resignation” still impacting businesses globally, New Zealand employers are putting more emphasis on creating supportive work environments. This includes offering mental health support, flexible work arrangements, and career development opportunities.
In the last quarter of 2024, expect to see more companies enhancing their employee value propositions (EVPs) to retain top talent. For job seekers, this translates to a broader range of benefits and incentives to consider when evaluating job offers.
3. Increased Competition for Top Talent
While the overall unemployment rate may be rising, there’s still a talent shortage in specific high-demand sectors, such as technology and engineering. As a result, companies are finding it challenging to secure skilled professionals. This competition is driving up salaries and benefits in certain areas, even as businesses maintain caution in expanding their overall headcount.
For job seekers in high-demand fields, this is an opportune time to negotiate favourable terms and secure roles that align with long-term career goals.
Challenges Ahead
Despite some positive trends, there are potential headwinds that could impact the job market in the final quarter. Rising interest rates and ongoing cost-of-living pressures are likely to affect both business investment and consumer spending, which in turn could limit job growth. Additionally, geopolitical uncertainties and global economic shifts may have a ripple effect on New Zealand’s export-driven sectors, such as agriculture and tourism.
For job seekers, staying informed and adaptable will be crucial. It’s essential to keep skill sets up to date and be prepared for a competitive job market where securing desirable roles may take longer than expected.
Preparing for the Future
As we look towards 2025, businesses and job seekers alike need to remain agile and responsive to the changing landscape. The last quarter of 2024 offers a unique window to reassess strategies, whether it’s refining hiring approaches or updating career plans. By focusing on resilience and adaptability, companies and workers can position themselves to thrive amid uncertainty.
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As a white-collar recruitment agency, Frog Recruitment is committed to supporting businesses in navigating the evolving landscape of inclusivity and diversity. 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.