As we round out the calendar year, many are looking forward to seeing the back of 2024 and the positives of 2025.
In late November, the Reserve Bank cut the Official Cash Rate (OCR) again by 50 basis points (bps) to bring it to 4.25%. Many banks have also moved to quickly cut mortgage rates which will bring a lot of relief to individuals. Inflation has eased with Reserve Bank Governor Adrian Orr stating that, “"If economic conditions continue to evolve as we outline in our document as projected, the committee expects to be able to lower the OCR further in the New Year. In fact, early next year, economic activity in New Zealand remains subdued and output continues to be below its potential, with excess productive capacity in the economy, inflation pressures have eased."
Let’s get into what the economy is doing and how it’s going to affect the hiring market as we move into the new year.
According to Stats NZ, the 12 months to September saw a net population gain of 44,907, down from 133,271 (-66%) in the 12 months to September last year. That's the lowest net gain for that period since 2014, apart from the same periods of 2021/22, when there was a net loss of people from migration. Over the 12 months to September this year 79,688 NZ citizens left long term, while 24,947 arrived back after an extended stay overseas. We must be asking the right questions as leaders when reading this. How can we keep our top talent? Why are we losing them? What can we do to stay ahead of our competitors?
According to SEEK, job ads fell by 26% year-on-year in October 2024. This is tough to hear as it was only a few months ago that we’d seen a lift. This could be for a number of reasons for candidates who are looking. Many businesses may be slowing down to wait out the rest of the year before making critical hires and if I had to say, I think we’ll see a lift in the first quarter of next year.
It’s not all industries that have seen a halt though, SEEK shared in their report that demand for government & defence workers has risen since August and rose another 15% in October. Banking & financial services (18%) and community services & development (7%) were among the other industries with notable growth in demand month-on-month. However, education & training were down (-9%) and healthcare & medical also down (-6%).
What are we currently still seeing though?
Now when you consider all of this and that markets move in cycles, one can’t help but think if spending / investment / project decisions are building up when they push go, will they all push go together?
Our experts interact with hiring managers and candidates daily, giving us unique, real-world insights into the latest salary and benefits trends.
Auckland, the ‘City of Sails’, is known for both it’s beautiful scenery and for being a growing urban oasis.
Tāmaki Makaurau is home to the largest Polynesian population in the world and also houses large European and Asian communities. With trade relations currently being developed with other regions such as India and South America, immigration has increased significantly from these destinations over the last several years – creating a very dynamic and diverse city. This diversity contributes to a plethora of talent as well as amazing food options.
Auckland's relaxed working environment lends itself to a good work-life balance, which attracts talent from around the globe. Whilst the cost of living is relatively high in this city, easy accessibility to social services and New Zealand's world ranking as the easiest place to do business, makes it an enticing city to reside in.
Auckland is also a land of opportunity, operating as a hub for many start-up and scale up businesses with big aspirations. New Zealand's 'number 8 wire' mentality, which represents the Kiwi problem-solving and can-do attitude, permeates throughout Auckland's culture and in all that its citizens set out to do.
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