Wellington hiring shows confidence despite slowdown
Wellington hiring shows confidence despite slowdown
Market Overview
The Wellington hiring market has seen a spike in activity between February and May; we have seen an increase of contract and Perm/FT work as well as extensions secured in advance for our existing contractors. However, this spike in business has since tapered after the budget announcement and as we near the end of FY25. Time will tell if this is just left-over budget being spent or if this surge in confidence will be sustained into Q1 of FY26. On a more positive note, if we compare the market now with the market 12 months ago, we are definitely seeing more planning and more confidence which is great.
In the regions, there’s a sense of steadiness. Turnover is low, with many people seemingly happy in their roles. The comment I have heard repeatedly is that it’s not so much about bracing for a downturn, it’s that teams are settled, and internal HR can manage recruitment with ease.
We’re also still seeing the lingering effects of restructuring and realignments in the public sector. These have stalled hiring in many government teams, with some departments unable to make decisions or commit to extensions beyond the current financial year. Despite this, there are isolated pockets of growth, and business areas that are starting to pop up with new activity.
Across the board, people are feeling tired and unsettled, but also quietly hopeful. Job security remains front of mind, but LinkedIn tells a positive story: many professionals are announcing new roles, and the energy, particularly in Wellington, feels encouraging.
Candidate needs
- Support and guidance around CV/interview prep is a common theme. There are a lot of people that are looking for work that haven’t applied or interviewed for a new role in a long time so need our help to get prepared.
- Communication, feedback, regular updates on applications.
- Security around contract extensions is paramount.
- Flexibility around WFH
Business needs
- Businesses are looking for market intel around rates both contract and permanent for varying skillsets. This is for upcoming projects that are in the pipeline.
- Reports on spend, tenure of contractor contracts
The year ahead
Looking ahead, many things will hinge on the coming months. FY25 budgets and funding allocations are still being finalised, and until those are confirmed, headcounts are unlikely to increase significantly. However, there are early signs of economic recovery, and the next OCR (Official Cash Rate) announcement is expected to bring lower interest rates, a move that could stimulate economic activity further.
For the government, the next quarter is critical. With an election looming next year, there will be pressure to shift from cost-cutting to actual policy delivery, particularly in Q1 and Q2. That could drive more stability and confidence in the public sector hiring landscape.
From a recruitment perspective, we anticipate that as market confidence builds, so too will candidates’ appetite for change. People who have been sitting tight in the name of job security may begin exploring new roles, which could result in high applicant volumes and offer employers access to some exceptional talent.
Overall, the second half of the year could bring more clarity, opportunity, and movement, especially if early signs of recovery continue to build. While uncertainty remains, there’s also momentum, and that’s something to watch.