- Recruitment CEO shares expert predictions on New Zealand’s job market in 2025
- Relocating: Robert Walters Australia reports unprecedented amount of Kiwi’s seeking work in Australia
- Skills shortage prompts employers to seek talent overseas
- Emphasis on soft skills as AI replaces hard skills: 96% of respondents consider soft skills to be as important, if not more so, than hard skills
- Fewer wanting to be managers: Only 11% of professionals consider career progression priority
- Economic uncertainty and the need for agility prompts higher demand for contingent labour workforce.
As we head into 2025, the New Zealand job market is poised for a period of transformation. According to leading global recruitment agency Robert Walters, several key trends are set to shape the landscape for employers and employees alike, driven by technological advancements, evolving workplace preferences, and shifting economic conditions.
In its latest report, Robert Walters forecasts significant changes in both talent acquisition and workplace dynamics across industries in New Zealand. From the rise of automation and AI to the growing demand for hybrid work models, the job market will face challenges and opportunities that will require businesses and job seekers to adapt quickly.
Unprecedented numbers relocating
The recruitment specialists at Robert Walters reported a significant number of workers from New Zealand actively seeking job opportunities overseas. Shay Peters, CEO of Robert Walters Australia and New Zealand said, “It’s no secret that the job market in New Zealand is pretty dire currently. The fact of the matter is, there just aren’t enough job prospects and opportunities to keep people here. As a result, we have observed a significant rise in the number of kiwi applicants looking to relocate, particularly to Australia.”
Robert Walters added that their Australian offices have seen an unprecedented amount of applicants from New Zealand enquiring about Australian job openings. The recruitment specialists anticipate that this trend will continue and potentially intensify in the coming year.
Peters added, “The lack of opportunities and inadequate salaries in New Zealand are driving people to seek employment overseas. This is a concerning trend which could impact the country for many years, as it stands to lose a substantial number of highly skilled individuals, potentially for the long term.”
The skills Shortage Continues: Upskilling and the Need for International Talent
The talent shortage that has affected most industries will continue to be a challenge for New Zealand employers in 2025. Robert Walters predicts organisations will need to become more strategic in their hiring practices, focusing on talent acquisition, retention and internal upskilling to fill critical roles.
“Employers will need to get creative in how they source talent, particularly in industries where skill gaps are wide,” Peters explains. “In addition to recruiting from a broader talent pool, businesses will need to invest in upskilling and reskilling their existing workforce to stay competitive. This approach will help to address skill shortages while also fostering employee loyalty and growth.”
According to the recruitment experts at Robert Walters, the substantial number of people relocating out of New Zealand may prompt employers to increasingly consider a remote workforce approach. This shift in strategy allows employers to overcome the challenges posed by talent relocation by embracing remote work arrangements.
Peters added, “As the outflow of talent from New Zealand continues, there is a growing likelihood that employers will embrace remote job opportunities to address the potential shortage of skilled workers within the country. With a diminishing pool of qualified candidates available locally, employers in New Zealand may need to expand their search internationally and offer remote work options in order to bridge the skills gaps and address the talent shortage.”
The Rise of Soft Skills Amidst AI advancement
The rapid pace of technological innovation, particularly the increasing integration of AI and automation, will have a profound impact on the job market. Robert Walters anticipates that sectors such as IT, finance, and engineering will see significant growth in demand for skilled professionals who can manage and optimise these new technologies. However, there will also be a notable shift in the types of skills employers are seeking.
“Skills in AI, data science, and cybersecurity will be in high demand, as organisations across all industries look to digital transformation to stay competitive,” says Peters. He also added that employers are seeking people who can adapt and use AI in their work. “The workforce will increasingly need to embrace continuous learning to stay ahead of evolving technology trends. It’s no longer enough to simply be proficient in current systems; the ability to adapt to new tools and platforms will be paramount.”
In addition to technical expertise, soft skills are becoming increasingly essential. Robert Walters’ research, which surveyed over 2,000 professionals, found that 96% of respondents consider soft skills to be as important, if not more so, than hard skills. These include communication, problem-solving, emotional intelligence, and adaptability. This shift is further supported by the fact that 92% of employers have rejected candidates due to insufficient soft skills.
“As the workplace becomes more automated and tech-driven, employers are placing a higher value on qualities like emotional intelligence, collaboration. AI may replace technical tasks, but roles requiring stakeholder management, communication, influence and the ability to complement AI will remain in high demand,” said Peters.
Shortage of Mid-Senior Level Managers
While demand for entry-level and junior talent remains strong, many industries are struggling to find qualified mid-senior level managers and executives.
Research from Robert Walters revealed that only 11% of professionals consider career progression a top priority in their professional lives, with most Gen Z employees saying they don’t want the added pressures of management for low reward.
“The increasing complexity of management roles, especially in hybrid and remote environments, as well as inter-generational differences is making it more difficult to find people wanting to be managers. With fewer professionals prioritising management careers, businesses will need to invest in leadership development to fill these critical roles,” said Peters
Economic Uncertainty and the Need for Agility Prompts Contingent Labour
While the New Zealand economy is expected to remain resilient in 2025, ongoing global economic uncertainty will create challenges for both employers and employees. The ability to remain agile and responsive to changing economic conditions will be crucial for businesses navigating these unpredictable times.
The recruitment experts suggested we might see a rise in the contingent labour workforce in 2025 as employers tackle uncertainty in both the workforce and economy.
“Employers will need to be more flexible in their hiring decisions and operational strategies,” says Peters. “A focus on agility and adaptability will be essential, as businesses must be prepared to pivot quickly in response to market changes, whether due to economic shifts, technological advancements, or changing consumer behaviours. This means that a contingent labour workforce is more attractive to employers as this offers flexibility and agility if needed.”
How to Navigate 2025: What Job Seekers and Employers Need to Know
In conclusion, the New Zealand job market is poised for significant transformation in 2025. Technological advancements, evolving workplace preferences, and shifting economic conditions will shape the landscape for both employers and employees.
Key trends identified by Robert Walters include a rise in automation and AI, growing demand for hybrid work models, and a significant number of workers seeking job opportunities overseas. The skills shortage will continue to be a challenge, prompting organizations to focus on talent acquisition, retention, and upskilling. The integration of AI and automation will require professionals to possess not only technical expertise but also essential soft skills. Additionally, there is a shortage of mid-senior level managers and executives. Economic uncertainty calls for agility and the need for businesses to be flexible in their hiring decisions and operational strategies. This may lead to a rise in the contingent labour workforce as employers seek flexibility and adaptability. Overall, the job market in New Zealand is set to undergo significant changes, and businesses and job seekers will need to adapt quickly to these challenges and opportunities.
“As we move into 2025, the ability to adapt, learn, and embrace innovation will be critical for both employers and job seekers,” concludes Peters. “The future of work in New Zealand is evolving, and those who stay ahead of the curve will be best positioned for success.”
