AI transforms New Zealand jobs as entry-level hiring slows
New research reveals that 87% of companies in New Zealand have seen job roles change or disappear as a result of artificial intelligence over the last 12 months, with organisations increasingly reporting a reduction in entry-level hiring and a growing skills gap. According to the study of 5,500 business leaders, local firms are responding by prioritising investment in AI training and seeking new approaches to talent development.
Entry-level squeeze
The study found a notable impact on young workers and those seeking to enter the workforce. A third (34%) of New Zealand companies report slowing entry-level hiring, with 88% expecting to further reduce such recruitment within the next three years.
Companies pointed to the reduction in opportunities for on-the-job learning, traditionally a pathway for cultivating future leaders. Locally, 76% of organisations say the chance for junior employees to develop through work experience has diminished-higher than in any other country surveyed. Additionally, 75% of New Zealand firms report difficulties in recruiting and training future leaders as a result.
Workforce transformation
New Zealand, alongside Argentina and the United States, reported the highest levels of job displacement due to AI, with 53% of surveyed organisations indicating some roles have been removed entirely. By comparison, just 11% of Chinese firms reported full job displacement, instead focusing on redesigning job roles (79%) to integrate new digital tools.
AI has shifted the requirements of many jobs, especially those featuring repetitive or knowledge-based tasks. Companies are shifting human resources towards strategic oversight, systems management, and creative problem-solving. For many, this has resulted in widespread restructuring and a fundamental reevaluation of workplace skills and structures.
Reskilling drives
With skills needs changing rapidly, 67% of New Zealand organisations are investing in AI-related training and reskilling programmes, matching the global average. Top barriers to reskilling included limited engagement from employees (61%), budget constraints (53%), and a shortage of expert trainers (48%). The majority of responsibility for these initiatives lies with IT (41%) and data teams (32%), but a quarter (26%) of companies are unclear on who leads the process.
Practical skills now carry more weight than academic credentials in the New Zealand job market. For entry-level roles, 65% of companies say technical certifications in AI tools or coding bootcamps are critical, closely followed by problem-solving and critical thinking (61%) and a portfolio of work (59%). Only 5% of organisations globally now view traditional university degrees as essential for such positions.
Hiring and pay trends
The shortage of AI-skilled talent presents its own issues. Nearly half of surveyed companies said that legacy systems are slowing AI integration, while 45% cited a lack of skilled talent. Consequently, New Zealand employers are prepared to offer AI specialists salary premiums averaging 21% above comparable technology roles. Additional incentives include access to new technology, a strong company mission, and clear career progression pathways. Access to advanced tools and projects is increasingly necessary for AI professionals as employers compete for limited talent.
Policy and regulation
The survey highlights ongoing uncertainty regarding AI governance and regulation. Only 27% of New Zealand organisations state they are very familiar with related local regulations, with only 24% finding these laws clear and business-friendly. Internally, just 21% of New Zealand companies have formal policies governing employee use of AI, a figure roughly in line with similar economies.
"AI is no longer emerging, it's fully here," said Nick Catino, Global Head of Policy, Deel.
"Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift," said Dr. Chris Marshall, Vice President for AI in Asia Pacific, IDC.