New Zealand job market sees surge in applications, fewer jobs

The latest State of the Market Report by recruitment platform JobAdder has highlighted the increasing challenges within New Zealand's job market. It notes a significant rise in job applications juxtaposed with a decline in job creation.

The report's data indicates that job applications grew by 49% over the past year, while job creation decreased by 17% in 2024. This has resulted in an intensely competitive market, with an average of 43 candidates vying for each position.

Moreover, the report notes a significant shift towards temporary and contract roles, which now account for 88% of placements. This marks an increase from 86% in 2023 and 82% in 2022, suggesting a trend towards workforce flexibility amid economic uncertainty in New Zealand.

Martin Herbst, CEO of JobAdder, stated, "This surge in job applications highlights a fundamental shift; recruitment is no longer about attracting candidates, but managing high volumes and identifying quality talent. Agencies must rethink their hiring strategies to handle this evolving landscape efficiently."

Herbst also commented on the decline in Q4 2024 job applications, saying, "We're seeing application numbers start to adjust in New Zealand. It will be important to monitor whether this slowdown is part of a broader trend or a temporary fluctuation. The decline in Q4 may signal a shift in candidate behaviour or reflect broader economic conditions influencing hiring and application volumes. If this trend holds, application volumes could stabilise in 2025, easing pressure on recruiters."

The report shows that recruitment agencies face extended timelines to fill permanent positions through job boards, taking an average of 48 days in Q4 2024, 16.6 days longer than in previous periods. Herbst pointed out that "with AI-assisted applications, agencies are being inundated with applications. Sifting through job applications from underqualified candidates wastes valuable time and resources. Proactive strategies leveraging internal databases offer a clear competitive edge in today's fast-moving job market."

Amid the financial and emotional challenges of prolonged job searching, 22-year-old Rosa Harkin experienced firsthand the realities of the current job market. She described her job-seeking journey as "disheartening" after leaving her previous fitness management position due to "toxic management" and applying for more than 50 jobs before securing full-time work.

"I loved my job as a fitness trainer, but I had to leave due to toxic management and feeling undervalued. For the first few weeks after leaving, I was unemployed. Eventually, I contacted a former employer in the hospitality industry who was able to offer me five to ten hours of work per week, which I was very grateful for," said Harkin.

She found some casual work, yet remained financially strained, relying on her savings and family support. "I am very fortunate that I still live with my parents, but I've still been struggling financially and have had to dip into my savings and rely on my family for financial support."

Harkin devoted time to customising her job applications but stated, "I had around four interviews and heard back from the one that offered me the job. Throughout my working life, I've found it easy to get a job, so I was shocked by how long it took this time." Eventually, she secured a full-time role as a customer service consultant.

She advised other job seekers to "Keep looking and keep applying. Ask around through friends, families, and even community pages. Don't give up; trust in the process, and the right opportunity will come along."

The current employment landscape in New Zealand, as depicted by JobAdder's report, presents significant challenges for job seekers and recruiters alike. A surge in applications, a decline in job creation, and a shift towards temporary employment are challenging existing recruitment strategies.