It remains a challenging market here in Wellington since my last update. Whilst job cuts in government are still happening, we have now seen a 2% increase. A little bit of optimism is just what we need. Whilst we aren’t over the hill yet and many announcements of cutbacks are still happening, hopefully this is a good sign of what 2025 can bring.

The Reserve Bank cut the Official Cash Rate (OCR) by 50 basis points (bps) this week to back up the previous cut bringing it down to 4.25%. The next review is end of February with more cuts forecast. It’s a much-needed positive outlook for businesses and individuals with Banks immediately passing on the drop to mortgage rates. Inflation is coming under control which is what is needed in our cost-of-living crisis, however it’s no secret that business and consumer spending is still considered weak with employment conditions softening.

Government is continuing their path on bringing employees back to the office which aligns with the decrease we’ve seen on job ads that allow flexible work. It’s still being met with negative feedback from candidates which is no surprise.

Other sectors that have seen increases include banking and financial services, Utilities, community services and development.