Labor market competition in New Zealand reached its highest intensity in more than two years, driven by a steady expansion in job ad volumes coupled with a sharper surge in candidate applications, according to data released by employment platform Seek.
The Bottom Line
- Applications per job ad increased 2.9% in August compared with the previous month, marking the sharpest acceleration in candidate competition since April 2024, as reported by Seek.
- Job ad volumes rose 0.1% in September compared with August, extending a streak of month-on-month growth while sitting 7.8% higher year on year.
- Artificial intelligence skill requirements in the workplace saw continued acceleration, with job advertisements referencing AI skills rising 3.7% in September and posting an 88.2% increase compared to the previous year.
Regional Divergence in New Zealand Hiring Activity
While national hiring demand held above levels recorded during the previous year, the pace of monthly growth settled into a narrower band of 0.1% to 0.3% over the six months leading up to September. Geographic distribution across the country showed marked regional variations during the month.
The South Island outpaced the rest of the country for monthly hiring activity. Tasman recorded the strongest regional gain at 2.3%, followed by Southland at 1.8% and Otago at 1.7%. In Auckland, job ad volumes rose 0.7% on a monthly basis. Conversely, contraction in hiring activity was concentrated in regions such as Hawke’s Bay, which declined 1.5%, and Taranaki, where job ads fell 1.2%.
Sector Shifts and Seasonal Preparation
Industry breakdowns for September revealed divergent hiring trajectories across different segments of the economy. Hospitality and tourism posted the most pronounced gains, expanding over 3% during the month as commercial operators prepared for the summer trading period. Data noted specific spikes in demand for travel agents, tour guides, and airline roles.
| Sector / Metric | Monthly Change (September) | Context / Trend |
|---|---|---|
| Hospitality and Tourism | +3.0% (approx.) | Driven by summer seasonal preparation; strong demand for tour guides and travel agents. |
| Overall Job Ads | +0.1% | Maintains a steady run of month-on-month growth; 7.8% higher year on year. |
| Marketing and Communications | -2.1% | Only professional services sector to register a monthly decline. |
| Accounting Roles | -1.3% | Contraction within professional services sub-category. |
| AI Skills Demand | +3.7% | Grew 88.2% year on year, reflecting ongoing technological integration. |
In contrast, professional services sectors experienced a broad-based pullback during September. Demand for marketing and communications roles dropped 2.1%, accounting listings decreased 1.3%, and information and communication technology positions fell 1.1%.
Candidate Competition and Technological Adaptation
The latest employment reports underscore a widening gap between available positions and the volume of job seekers entering the market. Seek national sales manager David Swift stated that candidates applied in greater numbers, pushing applications per job ad up at the fastest pace observed since April 2024. This dynamic points to sustained high competition for individual openings even as headline hiring volumes remain steady.
Concurrently, technological integration within business operations continued to reshape employer requirements. Job advertisements explicitly referencing artificial intelligence skills climbed 3.7% in September relative to August, pushing the annual growth rate for AI-tagged listings to 88.2%.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
