Auckland job market adapts amid slow rebound
Auckland job market adapts amid slow rebound
Market Overview
Economic Sentiment:
Last year’s business motto was “survive to 2025” with most business owners and leaders looking to the post-Christmas period for some kind of market bounce-back.
Auckland Anniversary passed, Waitangi weekend passed, and the kids went back to school. A stalled market remained.
Then the goalpost moved to after the Easter holidays and whilst there has been some improvement, the market remains relatively flat.
The next goalpost was the Budget announcement, and I think it has finally hit.
In the conversations we are having with clients, the realisation is that this is likely the new normal.
It’s time to move from “survive” to adapt, change, realign.
Technology & IT Market:
Recent SEEK data shows a stabilisation in the decline of job ads over the past six months – potentially signalling the beginning of a market rebound – while job application rates continue to grow, rising 31% year-on-year alone.
On the ground, we’re experiencing the same trend. Our clients are facing significant workloads managing a growing pool of applicants, creating frustration for both hiring managers and candidates. However, companies are increasingly turning to AI screening tools which, while promising, have led to confusion. AI has sometimes recommended candidates who have optimised their resumes to fit job ads, even if they aren’t the best match in reality.
Reflecting SEEK’s picture of stabilisation, the Talent Auckland team has seen consistent role volumes and placements from March to June. Most new job requisitions and placements are in infrastructure engineering, data analysis/engineering, and business analysis. Leadership changes are also on the rise, with businesses hiring new leaders capable of driving and managing change effectively.
There’s also a growing trend where leaders want to use AI for automation to reduce headcount in manual roles while retaining human-centric customer experiences. Employers are seeking candidates who are comfortable using AI tools for productivity but can also engage in creativity, strategy, and critical thinking.
Candidate needs
- Job Security: Candidates’ top concern remains to be job security. Clear and transparent communication from leadership is crucial during this period of uncertainty. Flexibility remains important but is becoming more negotiable.
- Contractor Security: Contractors are prioritising securing engagements that will extend over the Christmas period.
- AI Upskilling: As AI reshapes the workforce, there’s an increasing demand for professionals skilled in AI, data science, and automation. Employees are prioritising learning opportunities in these areas to remain competitive. Companies offering upskilling opportunities will have a competitive edge in attracting and retaining talent.
- Location Mobility: More candidates are considering relocating to Australia, attracted by the strength of the Australian job market. This trend has not slowed down at all.
Business needs
The “new normal” for employers is marked by frequent restructures and realignments, creating a demand for leaders who are effective change agents.
Other emerging priorities for businesses include:
- Diversity Focus: There has been a marked increase in requests for Māori and Pasifika candidates, particularly from private sector companies. This reflects a continued commitment to diversity, even in the face of global trends that have seen a reduction in DEI initiatives.
- Leadership: There is an increasing demand for leaders who are skilled at driving and executing change, particularly in relation to AI transformations and technological advancements.
- Workplace Flexibility: Several large organisations are now enforcing a 4-day in-office policy, signalling a shift back toward more traditional work structures.
The year ahead
New Zealand’s Budget 2025 outlined key initiatives including tax incentives for businesses to invest in productive assets, changes to international tax rules, and adjustments to the employee share scheme tax structure.
With new expenditure halved, we’ll need to track future updates to determine if the Investment Boost initiatives generate the growth our market needs.
The government’s focus on fiscal restraint continues, and while Investment Boost initiatives are promising, the long-term impact will require careful monitoring in the months to come.
We recommend the following actions for businesses aiming to adapt in this evolving environment:
- Invest in AI Education: Enhance AI literacy among your board and executive teams to make informed decisions.
- Assess Long-Term Skills Needs: Evaluate your long-term skills gaps and identify what can be developed internally versus what needs to be hired externally.
- Review your structure: Do you have the structure required to foster clarity, accountability and overall alignment to strategic objectives?
- Embrace Diversity: If you have company-wide objectives to increase the diversity of your workforce, including Māori and Pasifika candidates, consider all of the opportunities across the enterprise and consider your supplier network too.
Amid the uncertainty, businesses that embrace change and are willing to reset, recalibrate, and adapt will be best positioned to succeed.