NZ jobs grow but hours, tech roles & pay all slide

Employment Hero data shows New Zealand's job numbers continued to rise in December, while hours worked fell and Science & Technology roles declined year on year.

The company said its latest NZ Jobs Report pointed to a labour market that "is growing on the surface but weakening underneath". It highlighted a drop in average hours worked of 4.7% compared with the same period a year earlier. It also reported a 3.7% year-on-year contraction in Science & Technology roles.

Neil Webster, General Manager, NZ at Employment Hero, linked the trends to productivity risks and pressure on skills supply.

"New Zealand has more people in work, but fewer of the skills that drive innovation - and fewer hours being delivered overall. That's not a healthy trajectory. If high-skill sectors shrink while hours fall, you're building a bigger workforce but not a more productive one. The data is clear: our labour market is moving, but it's not necessarily moving in the right direction," said Neil Webster, General Manager, NZ, Employment Hero.

Skills squeeze

The report singled out Science & Technology as a high-paid sector that still contracted over the year. Employment Hero reported a median total hourly rate of $55.80 for the industry. It said the decline sat alongside growth in other parts of the economy.

Webster compared the trend with activity in other sectors and described it as a strategic issue for employers and policymakers.

"When your most critical capability is contracting, you've got a strategic challenge," said Webster. "Construction and manufacturing are accelerating, but digital capability is sliding backwards, and that gap will cost us."

The figures add to a broader debate about New Zealand's ability to develop and retain digital and technical talent. Employers in software, data and engineering fields have competed for skilled staff for years, while migration settings, training pipelines and investment levels remain recurring points of contention across the business community.

Fewer hours

Employment Hero reported that the fall in hours worked affected every age group. It also said the decline included full-time workers. The report contrasted the New Zealand result with Australia, which it said recorded a smaller year-on-year decline of 1.3%.

Webster framed the drop in hours as a sign of employer caution and changing demand.

"This is a productivity warning light," said Webster. "More people working fewer hours is a sign of unstable demand and employer caution."

Hours worked matter for household income and for business output. If employers hire more people while rostering fewer hours, underemployment can rise even as headline employment measures improve. Businesses can also face challenges in forecasting workloads and managing staffing costs when demand varies widely from week to week.

Casual patterns

The report said casual employment increased 18.6% year on year. It also said hours for casual workers fell sharply. Employment Hero reported a 21.2% year-on-year decline in casual hours, alongside a 7.4% month-on-month fall.

Webster said the pattern suggested strain for workers relying on variable shifts.

"This is one of the clearest signs of strain," said Webster. "Casuals are being hired, but the hours simply aren't there. They're working more jobs and not earning more money."

Casual and part-time work play a significant role in sectors such as hospitality, retail and some services roles. Shifts in consumer spending and business confidence can quickly change staffing needs in those areas. A rise in casual headcount paired with lower hours can indicate businesses spreading limited work across a larger pool of workers.

Media volatility

Employment Hero also highlighted volatility in Sales, Marketing & Media roles. It reported a 6.1% month-on-month increase. It also reported a 19.5% year-on-year decline.

The report linked the annual fall to structural change in the media and advertising market. It pointed to job cuts across major media groups and a shift in advertising spend to global digital platforms.

Webster described the environment as characterised by short hiring bursts and rapid pullbacks.

"These cascading job losses have reshaped the entire media ecosystem, contributing to a volatile hiring environment where employers bring on talent in short bursts, then pull back as budgets tighten," said Webster.

Marketing and media roles can serve as an early indicator of corporate sentiment. Businesses often adjust marketing budgets quickly in response to sales conditions. A weaker year-on-year picture can signal a cautious approach to discretionary spending, even when hiring in other occupational groups continues.

Young workers

The report said younger workers recorded the steepest monthly pay declines. It reported a 2.0% month-on-month decline for workers aged 18-24 and a 0.9% fall for those aged 25-34.

Webster said cost pressures made small wage movements significant for younger cohorts.

"With living costs still rising, even a small drop hurts," said Webster. "Young workers are the most mobile and the most financially exposed, and right now, they're going backwards."

"If New Zealand wants a labour market that is resilient and future-ready, 2026 must be the year we invest in skills, protect hours, and support workers at both ends of the wage spectrum. The data is telling us exactly where the pressure points are," said Webster.

Employment Hero said its platform serves more than 10,000 businesses in New Zealand and 70,000 employees. The company said it compiled the report from its Jobs Report dataset for December and positioned the results as a view of changes in employment, wages and hours across its customer base.