RCSA’s latest job report data has revealed that New Zealand’s job market has taken a severe nosedive in the last 12 months. The National Job Index plummeted a disastrous 30.5% year on year, more than double the decline seen in Australia where demand fell 14.3%.
“The retraction in job demand was expected, but the severity is still somewhat of a shock. The index is currently sitting at 87.68 which is the lowest level on record since June 2018, says RCSA CEO Charles Cameron.
“Our members have been telling us that the market has softened, and that job demand has fallen, but they have remained optimistic. It’s clear that consecutive interest rate rises to contain inflation have taken hefty toll. Policies to reduce spending have had an adverse effect on hiring.
“For greater perspective, it is interesting to note job postings have declined 41.4% since December 2021. This was shortly after the end of Covid lockdowns when the job market peaked.”
RCSA’s latest Jobs Report data, taken from employer, recruiter and niche job boards across the country, has also revealed that opportunities for both permanent and flexible workers have crashed. The permanent job index is down 29.8% and demand for flexible employees has dropped 33.1% in the past year.
The drop in demand across all types of employment became particularly noticeable in the three months to December. Permanent job adds fell 22.2% and opportunities for flexible work retracted by 7.3%. Over the December quarter there was a 19.8% fall in job opportunities.
“The quarterly decline in flexible work was far less severe than the reduction in perm positions. This is quite typical when business confidence begins to wane. Employers generally prefer to hire casually so they have the freedom to upscale and downscale at will,” says Cameron.
The number of ads on job boards across all regions of Aotearoa declined over the past year. Wellington slowed the most with a 47.6% reduction in job vacancies over 12 months. Opportunities for work across all industries, sectors and professions also declined.
2023 at a glance.
Demand for technology professionals plummeted a staggering 58.3% over 12 months. This worsened in the last quarter of 2023 when public sector funding slowed.
Public Administration roles reduced 53.7%
Financial and Insurance service roles declined 57%
Positions for Labourers, Drivers and Operators decreased 43.5%
Healthcare fell 20.6% year on year.
“Unemployment rose by 0.3% to 3.9% in September and economists predict the rate will rise even further…possibly to 4.3% over the December quarter, says Cameron.
“Although it all seems like doom and gloom, we must remember that unemployment is still historically low.
“I am looking forward to seeing what the data will reveal next quarter so we have a better indication of what we can expect in 2024. New Zealanders are resilient, and I have no doubt they will weather this storm.”
The full Jobs Report can be accessed below.
https://www.thejobsreport.co.nz/report/new-zealand-the-jobs-report-2023-a-year-in-review/
