The survey showed a surprising jump in small construction firms hiring tradespeople.
Photo: Unsplash / Abdul Zreika
More than half of employees at small and medium businesses say it will take them longer than three months to find a new job if they were laid off.
HR portal Employment Hero has published its survey of SME employment and said it had 70,000 responses from employees and owners, making it the most comprehensive of its kind in the country.
The survey said the job market for 18 to 24 year-olds had improved markedly over the past year, but New Zealand country manager Neil Webster noted the increase was driven by casual jobs.
At the other end of the scale, 64 percent of over-55s doubted they would find another role quickly if they were job-hunting right now.
New Zealand spokesperson Neil Webster said employers were reluctant to commit to hiring full-time workers, after pining their hopes on a recovery in 2025 which had not happened.
The worst is behind us
Webster said the survey had improved since last year’s, but it remained a challenging job market.
However, he said this year’s survey picked up a few bright spots that indicated the job market had at least stabilised.
He said the survey showed a surprising jump in small construction firms hiring tradespeople, previously one of the weakest employment sectors.
On a similar note, Webster said the hospitality and retail sectors were also hiring again.
The survey shows employment jumping by 19 percent in Otago, with South Island job growth rising by 5.4 percent annually, easily beating out the North Island’s 0.6 percent gain.
Webster said a robust rural economy and a rebound in tourism – New Zealand’s two largest export earners – were behind the South Island out-performing the North.
Independent economist Saul Eslake agreed with Employment Hero’s assessment.
“The data shows that the sharp slowdown in New Zealand’s employment growth, which began in early 2024, has largely run its course,” Eslake said.
Employment Hero chief executive Ben Thompson said improving economic conditions would help.
“We’re now likely to see a modest pick-up in the second half of 2025, enough to help stabilise unemployment after it reached a nine-year high in the June quarter.”
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