The New Zealand job market has experienced a significant downturn in the June quarter, with online job postings declining by a massive 10.8%. This decline signals a substantial shift in the employment landscape over the past three months and raises concerns about the potential rise in unemployment in the upcoming quarter. In this blog post, we will delve into the key findings of the recently released report by the Recruitment, Consulting & Staffing Association (RCSA), which sheds light on the current state of the job market in New Zealand.
A Look at the Numbers
The job market downturn has had varying impacts on different sectors. Flexible work took the hardest hit, plummeting by 25.0%, while permanent job opportunities experienced a relatively milder decline of 7.0% during the same period.
Among the industries, Accommodation and Food Services experienced a significant decline in job postings, likely due to tougher economic conditions and reduced spending on entertainment and dining out. Similarly, Education and Training suffered a big hit, falling by 21.8%, despite enjoying a modest recovery as overseas tourists returned and employers addressed skills shortages through training.
Public Administration was the only sector that recorded some growth, albeit a modest 1.6%. The upcoming General Election in October is likely to affect job postings in this sector in the immediate future.
The Technology sector faced a substantial decline in demand for professionals, largely attributed to the withdrawal of startup funding by Venture Capital. This trend has resulted in the abandonment of projects without clear commercial outcomes, leading to early termination or non-renewal of contracts.
A surprising bright spot in the job market was observed in Health, Education and Community Professionals, with growth primarily driven by the Health and Community sectors. However, the opening up of international borders has brought supply relief to key occupations, yet shortages still persist.
Conversely, Technology Professionals experienced the most significant decline, indicating the adverse impact of funding withdrawals from Venture Capital. Additionally, Business Professionals saw a 1.1% drop, although 2023 has seen a net positive reversal compared to the downward trend observed in late 2022. However, top-level executive roles continue to soften, falling by a further 14.3%.
Geographically, Wellington and Canterbury regions bore the brunt of the job market decline, experiencing declines of 21.1% and 20.6%, respectively. These regions had previously shown relatively strong but short-lived performance at the beginning of the year.
Auckland Region, representing nearly 40% of the total job vacancies in the country, is often considered a bellwether for the national employment market. It experienced an 11.0% decline, in line with the overall national trend.
The New Zealand Jobs Report by RCSA highlights a concerning decline in the job market, especially in online job postings. Various sectors, regions, and occupations have been affected differently, with Technology and Flexible work taking the hardest hits. Despite some sectors experiencing growth, the overall outlook remains uncertain, and it is crucial to closely monitor how the job market evolves in the coming months.
The report also emphasizes the importance of adapting to changing economic conditions and staying resilient in the face of challenges. As job seekers, employers, and recruiters, it is essential to keep an eye on the evolving trends and make informed decisions to navigate these unprecedented times successfully.
Disclaimer: The information provided in this blog post is based on the RCSA Jobs Report and Jobs Index developed by Hro2 Research. The data has been seasonally adjusted and trended using X-13ARIMA. The analysis and commentary aim to provide insights into the New Zealand job market’s current state and should be used for informational purposes only.
Main image produced using Blue Willow AI