UK vs. NZ Employment Trends: Predictions for 2025

The employment landscape is undergoing significant shifts globally, with regions like the UK and New Zealand experiencing both challenges and opportunities. Economic uncertainty, shifting workforce expectations, and the continued evolution of workplace norms have shaped the outlook for 2025. Employers and job seekers alike are navigating this landscape with cautious optimism, leveraging trends and adapting to the ongoing changes.

In New Zealand, the job market has seen significant contraction. Job vacancies in Wellington, for example, dropped by a striking 49% in the year to September 2023. This reflects the challenging conditions in the region as businesses cautiously approach hiring decisions. The UK, meanwhile, has shown some positive indicators, with a recent uptick in business and consumer confidence. However, this improvement remains fragile, underscoring the continued unpredictability of the market.

While some sectors, such as healthcare and technology, show resilience, others face headwinds due to inflation, supply chain challenges, and shifting global priorities. The evolving nature of workplace flexibility and hybrid work models further complicates the landscape, creating both opportunities and challenges for businesses and job seekers alike. As we prepare for 2025, understanding these dynamics and adapting accordingly will be crucial for success.

“The market isn’t booming, but with the right strategies, opportunities can be found.”

During a recent UK Market Update, hosted by Managing Director Liz Jones, was joined by NZ Principal Consultant Mark Smith, and shared valuable insights into the employment challenges and opportunities in both the UK and New Zealand. They examined how global and regional factors are influencing hiring trends, workforce expectations, and market stability.

Mark highlighted the unique challenges facing the New Zealand market. “In Wellington alone, job postings dropped by 49% year-on-year,” he shared. Despite this, there are signs of recovery, though the timeline remains uncertain. He noted that many hiring managers expect improvement by mid-2025, adding, “We’re seeing green shoots, but a full recovery is unlikely before March or April next year.”

One prominent theme in the discussion was workplace flexibility. Liz contrasted approaches in the UK and New Zealand, noting, “In the UK, the right to request flexibility is now enshrined in legislation, whereas New Zealand is taking a stricter stance, pushing public servants back into offices.” This divergence has implications for workforce satisfaction and talent retention. Hybrid work remains a contentious topic, with Mark pointing out that, “Around 60% of the workforce doesn’t have the opportunity for remote work, which raises equity concerns.”

The conversation also explored the importance of adaptability in attracting and retaining talent. Liz emphasised the need for employers to evolve their strategies, stating, “The ability to attract and retain talent today goes beyond just salary. It’s about articulating your purpose and building a compelling employer value proposition.” This sentiment highlights the increasing complexity of workforce dynamics, where organisations must balance compensation with cultural and operational flexibility.

Mark also shed light on the challenges posed by immigration processes in New Zealand. “Visa sponsorships are currently difficult to secure, with significant delays in processing,” he explained. These barriers add another layer of complexity for businesses trying to fill critical roles, as well as for job seekers looking to expand their opportunities internationally. He shared examples of candidates facing long wait times before starting roles, underlining the need for patience and strategic planning in such cases.

Liz also touched on the evolving employer-employee relationship in a post-pandemic world. She highlighted that, “Employers need to focus on articulating clear values and creating workplaces where employees feel both challenged and supported.” In such an environment, hybrid and flexible work arrangements are not just perks but critical elements of the employment value proposition.

The speakers agreed on the importance of resilience and adaptability for job seekers. As Mark succinctly put it, “The market isn’t booming, but with the right strategies, opportunities can be found. It’s about positioning yourself well and staying proactive.”

Practical Advice for Job Seekers in 2025

For those navigating the employment market in 2025, preparation and adaptability will be key. Below are some practical tips to improve your prospects in an uncertain landscape:

1. Focus on Skill Development
   Stay competitive by upskilling in areas that align with current market demands. Short courses or certifications in digital tools, project management, or other industry-specific skills can make your profile more appealing to employers.
   
   
2. Embrace Flexibility
   Be open to hybrid or remote roles if your circumstances allow. While flexibility may not be feasible for all, it remains a priority for many organisations, especially in sectors where it’s practical.
   
   
3. Target Growth Sectors
   Research industries with steady demand, such as healthcare, technology, or renewable energy. These fields are likely to offer better job security and opportunities for advancement.
   
   
4. Customise Your Approach
   Tailor your CV and cover letter for each role, ensuring you highlight relevant skills and experience. Employers appreciate candidates who demonstrate a clear understanding of their needs.
   
   
5. Leverage Networking
   Attend industry events, connect with professionals on platforms like LinkedIn, and engage in discussions to expand your network. Personal connections can often lead to job opportunities.
   
   
6. Prepare for a Competitive Market
   Understand that the job market may remain challenging through the first half of 2025. Approach your job search with resilience and a willingness to explore different roles or industries.
   
   

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In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.