New Zealand labour market update:
Key trends and insights for 2025
Auckland’s job market has tightened in early 2025, with a 1.7% drop in filled jobs—over 13,000 roles lost. While migration continues to boost population growth, more Kiwis are heading offshore for better pay, especially in Australia. Increased competition among job seekers has reduced candidate bargaining power. Employers are still navigating uncertainty and should adjust hiring strategies to retain key talent.
Wellington’s market remains cautious but stable. Although cost pressures persist, major cuts in finance roles have been avoided. Demand is growing for financial accountants and business partners as organisations seek efficiency and growth. Recruitment is expected to lift in the second half of the year as budgets reset.
Unemployment has risen to 5.1%—a four-year high—reflecting a cooling economy. Job seekers face stiffer competition, but demand remains strong in IT, engineering, construction, and healthcare. Both employers and candidates will need to stay flexible and focus on areas of ongoing demand as the market continues to shift.
Employment trends shaping New Zealand’s labour market in 2025
What key factors are driving talent retention in 2025?
Talent retention is a crucial focus in today’s competitive workforce. What drives employee loyalty, from career opportunities to work-life balance? How can businesses align retention strategies with employee expectations and bridge gaps in understanding between managers and staff to foster meaningful, engaging, and productive workplace environments in 2025?
What is the financial impact of a slow hiring process?
In a competitive job market, speed matters—especially when it comes to hiring. A slow recruitment process can lead to missed opportunities, increased costs, and added pressure on existing teams. But what is the true financial impact of delayed hiring? How much does it cost businesses to lose top candidates, extend vacancies, and strain productivity?
What are the leading causes you are losing your staff in 2025?
Employee retention and resignation remain significant challenges in today’s competitive workforce. Why are employees leaving their jobs, and what strategies can employers use to retain top talent? How does leadership influence employee engagement, and what role do workforce trends play in shaping supportive workplaces and addressing evolving career priorities in 2025?
What key factors are driving talent retention in 2025?
Talent retention remains a top priority for organizations in today’s competitive job market. With evolving workforce dynamics, understanding what matters most to employees and job seekers is critical for employers to develop strategies that foster loyalty and engagement. Exploring key retention levers, including career opportunities, management support, and work-life balance, reveals how companies can better align their efforts with employee priorities to create meaningful workplace experiences.
To address rising turnover in 2025, organisations are leaning into more holistic and proactive retention strategies. Competitive base salaries, personalised career development plans, and a strong focus on upskilling are at the forefront. There’s also a growing trend of investing in employee experience—offering hybrid work options, wellbeing initiatives, and fostering internal mobility through lateral and cross-functional moves. These efforts signal a deeper commitment to building inclusive, future-ready workplaces where employees feel supported, engaged, and empowered to grow.
One of the most significant reasons employees continue to leave their roles in 2025 is the lack of clear career growth opportunities. This remains a leading driver of attrition, alongside low compensation, ineffective management, and workplace cultures that fail to support employee wellbeing. Increasingly, workers are also voicing concerns over limited flexibility, poor work-life balance, and outdated or insufficient employee benefits. These ongoing challenges highlight the importance for organisations to reassess their internal structures and create environments that align with the shifting values and expectations of today’s workforce.
What is the financial impact of a slow hiring process?
A slow hiring process can cost more than just time—it can significantly impact a company’s bottom line. Extended vacancies lead to lost productivity, increased pressure on existing staff, and the potential loss of top talent to faster-moving competitors. In 2025’s competitive market, speed and efficiency in recruitment are more critical than ever. What are the true financial risks, and how can employers streamline hiring without sacrificing quality?
In addition, work-life balance, flexible working arrangements, and a strong sense of purpose remain vital to retention efforts. Organisational culture, job stability, and accessible mental health support continue to shape employee satisfaction, reflecting the growing demand for a more human-centric workplace. While environmental impact and community involvement rank slightly lower, they still matter to a meaningful portion of the workforce. As retention strategies mature in 2025, understanding and acting on these priorities will be essential to staying competitive in the talent market.
In 2025, career development remains the top driver of employee retention, with increasing emphasis on training, upskilling, and supportive leadership. Trust in management and access to clear growth pathways continue to influence whether employees choose to stay. While both hiring managers and employees agree on the importance of competitive pay, the largest disconnect still lies in the perceived value of learning and development. Employees are prioritising ongoing career growth, while some managers continue to underestimate its impact—highlighting the urgent need to align strategies with evolving employee expectations.
Why are you losing your staff in 2025?
Employee retention and resignation are ongoing challenges in today’s dynamic workforce. Understanding why employees leave and how companies can improve retention strategies is crucial for fostering long-term engagement and productivity. In recent years, the factors driving employee resignations have evolved, highlighting the importance of addressing career development, workplace culture, and leadership. What are the root causes of employee resignations, the strategies businesses are employing to retain talent, and the broader implications for workforce management in 2025?
One of the most significant reasons employees continue to leave their roles in 2025 is the lack of clear career growth opportunities. This remains a leading driver of attrition, alongside low compensation, ineffective management, and workplace cultures that fail to support employee wellbeing. Increasingly, workers are also voicing concerns over limited flexibility, poor work-life balance, and outdated or insufficient employee benefits. These ongoing challenges highlight the importance for organisations to reassess their internal structures and create environments that align with the shifting values and expectations of today’s workforce.
To address rising turnover in 2025, organisations are leaning into more holistic and proactive retention strategies. Competitive base salaries, personalised career development plans, and a strong focus on upskilling are at the forefront. There’s also a growing trend of investing in employee experience—offering hybrid work options, wellbeing initiatives, and fostering internal mobility through lateral and cross-functional moves. These efforts signal a deeper commitment to building inclusive, future-ready workplaces where employees feel supported, engaged, and empowered to grow.
