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Job portal Seek says the number of job ads was down 0.4% in March across NZ, but a much steeper 27% since March 2023

Economy / news
Job portal Seek says the number of job ads was down 0.4% in March across NZ, but a much steeper 27% since March 2023
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Source: 123rf.com

Jobs portal Seek says the number of jobs advertised during March fell less than half a percent from February, but job ad numbers are down 27% year-on-year.

For the 12 months to March, every region across New Zealand reported a plummet in job advertisements. 

Wellington has slumped the most with job ads down 38% in the year ended March 2024. Taranaki isn’t far behind, with job ad numbers in that region down 30% during the same period.

Job ads in Northland have fallen 28% in the last year, and Canterbury and Auckland both reported a 27% drop.

In the month of March 2024 however, job ads nationally only edged down 0.4% and some regions actually saw an uptick in job advertisements.

“Job ad levels have been declining steadily since 2022, but it appears as though the rate of decline has slowed,” Seek New Zealand manager Rob Clark said.

Job ads in Taranaki and Marlborough jumped the highest where they were up 19%, and in Canterbury were up 4% in the month of March.

Going in the other direction, Gisborne job ads were down 27% from February and fell 3% in Auckland. Northland fell a further 9% and job ads in the West Coast were down 8% in March. 

“Applications per job ad remain at extremely high levels, which is good news, but does present challenges for hirers to shortlist and identify the right candidates,” Clark said.

Seek found that the public sector led the job ad decline in March, with roles in education and training, healthcare and medical and government and defense roles all falling from February.

This isn’t surprising as RNZ’s tally of the proposed public service sector job cuts currently sits at 3,042 as of Monday. Massive job cuts have been announced across the public sector’s ministries and agencies as well as wider Crown entities.

RNZ’s tally shows the Ministry of Education has seen the biggest job cut backs so far – 565 roles – closely followed by the Department of Internal Affairs and Oranga Tamariki who have each reported almost 500 job cuts.

Seek's Clark said roles within professional services and construction were experiencing notable growth.

Consulting and strategy roles were up 12% in March while professional services roles which include human resources and recruitment were up 15% and recorded the largest increases in ad volumes.

Statistics New Zealand’s employment indicators for February 2024, which came out earlier in April, show compared to March this year, filled jobs rose 0.3% to 2.4 million earlier in the year.

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37 Comments

This has been a leading indicator that things are going south.... companies haven't been cutting roles in the past, they were just not recruiting additional staff.. but now they have started cutting..

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The migration taps are also running at full flow.

At my firm, we are attracting applications on entry-level roles from plenty of older Indian candidates with 10+ years of work experience. I suppose they can always supplement their low incomes by driving an Uber at nights/weekends.

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Add to the above the number of working visa arrivals without a job offer. 

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Number arriving on work visa is at around 2016 levels and trending down on last year.

Net migration in general is trending down. Spring -> Summer 2023 vs Spring -> Summer 2024, it's down ~40%. There seemed to have been an odd blip of residents returning this summer which boosted net migration by ~20k more than the trend suggests. Without that it would be down ~55% over the same period.

Fewer people arriving, fewer jobs.

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They aren’t eligible for the dole, right?

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Note the 'dole', however emergency benefit available. 

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"Applications per job ad remain at extremely high levels, which is good news"

Ick.

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Unemployment by design, in a system designed to punish the unemployed...

It says a lot that it's explicitly accepted that driving down wages and employment rates is ok as a method of attempting to control inflation, yet we have absolute kid gloves on when dealing with the increasing profits during high inflation periods. Profits should be the first thing to be restrained when fighting inflation.

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Incompetent government propping up an economy with ever increasing fits of borrowing and hopeless spending was never going to a) last forever, or b) end well. The effects of an and b are just starting. Noticing some good cheap holiday homes appearing on trademe. Those that are cashed up should be able to get rock bottom prices a couple of years from now. The thing about cuts in government spending (or the end of hopeless borrowing or whatever we want to call it) is that is does lot just effect government employees. The net is wide, it will devastate companies like AirNZ and many many privately owned companies (and their employees) who relied on government money being shovelled out to them for projects that provided no positive outcome for tax payers. Thanks Labour.

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Is the new government not continuing to borrow more? Seems like they think it can go on further.

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Borrowing to help property, funnily enough. Purely coincidental that they have large property portfolios themselves.

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You need to get over it. The last hopeless lot borrowed 70 billion dollars or something crazy. That did not go to property speculators or Landlords. Landlords get taxation treatment just like any other business and they also get rent subsidies that the government pay as a contribution to rental for private rentals. Labour had an opportunity to correct this, or start to correct it, and of course they completely failed. So, you are left with the status quo. Should we kid tenants out on the street or should the government continue to pay rental supplements. You seem to want to kick them out on the street so landlords don't get paid....

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No need to get upset at folk pointing out hypocrisy and entitlement of property speculators in parliament.

That did not go to property speculators or Landlords.

Factually incorrect, actually. Over $2 billion per annum went to speculators and landlords via rental yield and price welfare subsidies. Around $11 billion of taxpayers' money was spent via RBNZ monetary policy that benefited property speculators and landlords. Around $100 million so far was handed to commercial property owners whose land got wet. Around $800 million was spent on handouts to owners of Auckland properties that got wet, including property speculators and landlords. Regional fuel tax was used to subsidise property owners in Auckland, benefiting property speculators and landlords.

So there's been a huge amount of welfarism for property speculators and landlords under Labour, even as they shrieked and mewed about a "war on landlords" and the loss of their dignity.

Not to mention being carried for some years by productive working Kiwis before eventually being asked to contribute more share of tax.

No need to release crocodile tears and "won't somebody please think of the children!?!"

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No tears from me. I haven't got skin in that game, although you are promoting it well, so I may have to re-consider. Particularly with property becoming cheaper. If renters can pay for it for me with assistance from the government and less tax to pay for me, sounds great.

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Yes, they need to morrow more temporarily to fund the things that they cannot escape from or cancel that were put in place by Labour. They will take a while to unwind and cancel, but it will take more borrowing to fund in the mean time to get to that point. However. that borrowing is a fraction of what Labour was doing, and will cease.

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So that is what your feelings are?

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You guys are the ones who are all about the feelz. Not me.

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So do you buy the line that this govt won't be borrowing to fund tax cuts?

 

If so, have I got a deal for you, Auckland Harbour bridge going cheap!

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Well, they still borrowing I get that. But it is massive stretch to say they are borrowing to give the people that pay the most tax a big of a fair go. If anything they are temporarily borrowing to support programs and benefits that shouldn't exist (and taxation was increased to support this unnecessary bloat), while said programs and benefits are wound back or cancelled completely. So, in the end it is a zero sum game. I'll enjoy my tax cut. Thanks.

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Oh, so they are borrowing for other stuff, not tax cuts, despite it all comong from the same bucket.

Weird perspective.

 

"I'm not in financial trouble because of my gambling problem, I can afford that, the issue is my rent, which I have to borrow to pay"

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They are going to provide tax relief (or re-instate the status quo) that was unnecessarily changed to spend on unnecessary items. I will get my tax back, and the spending is cancelled. It's kind of like employing three gardeners when you live in an apartment. Only an idiot would do that (we are talking Labour here so of course that was the kind of ideas they funded). So, when you cancel that sort of activity you get the money back, which is what is happening. I'm not sure how to explain it to you in more simple terms. This is kind of a financial web site, which is kind of ironic because many that comment here have no clue about finance whatsoever or it appears - maths.

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Unemployment as a concept is kinda gross and unnatural, it's only really possible because of artificial exclusivity over resources, especially land. No such things as unemployment in "primitive" societies where that exclusivity hasn't been established.

Obviously our complex modern economies are well past the point where we can apply hunter-gatherer economics, but nonetheless I think unemployment should be recognised as a massive downside to the system of capitalism and private property rights. Unfortunately ideas such as Georgism, which try to address this shortcoming without sacrificing the benefits of capitalism, are thrown by the wayside, a casualty of vested interests' control over political and intellectual narratives. 

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Doesn't surprise me. Businesses I work with are being swamped with applicants for just about every job being listed, and every day I see more and more "open to work" badges appearing on LinkedIn.

 

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Anecdotal: my partner finished a two-year diploma in architectural drafting last year. 

This was one of the courses that was made fees-free because demand was so high - three years ago.

Of her graduating cohort of 70, 2 have found relevant employment. 

 

(ps. Half of that cohort of 70 is not realistically employable, but I think she'd agree that the top 20, say, are competent).

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Yes, neighbour got his brother-in-law to migrate here from India to study diploma in QS. Unfortunately, the guy has been working at a bottle store for the last 5 months post-graduation with no jobs available in the sector.

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About 3  years ago I phoned around and visited a specific architectural design company in NP. One individual was busy for the next 6 months and the office i visited were also busy with work from ChCh amongst other work. My notes from the time. "very busy come again 6month time or doesn't want the job. difficulty in arriving at estimate 1st stage rmc ~2500 incl floor plan. another 1 or 2 stages and last stage is not much more than 2nd stage and very little different in cost. builders now want stage 3, ie full detail, 3rd stage $10-15k. BC NPDC subcontracting to an Akl firm so much work and exceed 20d limit"

This put me off them and still will "difficulty in arriving at estimate 1st stage rmc ~2500 incl floor plan." 

Unfortunate for those who have just completed architectural design now without a job particularly as they'd be unable to become an LBP without some experience under their belt.

I doubt any existing experienced  LBP design level1 or even level2 have reduced their charge out rates but depending on my circumstance I'll be finding out in the next 6 months.

Am currently going over some dwgs that have passed BC from a very experienced architectural designer. 20 rfi's were required before being passed.

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Another day, another lie from the new government comes to light.

"Asked why frontline staff were now being cut, Luxon said he had been very clear frontline "services" rather than frontline jobs would be protected."

https://www.newshub.co.nz/home/politics/2024/04/prime-minister-christop…

Even if you were to take the most charitable position possible, that would be that what Luxon repeatedly said in the campaign was effectively nothing of any substance, and was simply said to deceive voters.

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A middle level line manager could quite easily mouth off to those below, I  want  x% reduction in expenditure. How you do it is not my problem. I hope it comes back to bite him.

A commentator mentioned that cabinet ministers are not allowed to concern themselves with operational matters. Would love to know if that's a generally accepted practice or embodied in legislation. A bit like saying the RBNZ is independent. If push comes to shove a remit can be issued to the RBNZ changing the way they operate.

I feel there are high level operational decisions that cabinet ministers need to become involved in. Unfortunately this won't happen as they then have to take some responsibility for the decision. Easier to say "the officials blah blah blah....."

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A middle management clean out, and a few further up the food chain would have less unemployment effect and probably save more dollar

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From my experience working in govt over the last 5 or so years, the issue has come from lack of retention from the large wage increases, unnecessary projects and roles having been created, and due to the lack of retention, those that get the middle management roles are often unfit for the role. Work in wellington and get into management/leadership in 12months form an entry level role? Sounds like a cushy paycheck for many in their 20's and a good mark on the CV whether they achieve or not. 

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Many contractors suddenly looking for perm work as well

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Spoke to someone at the coal face working for an electrical company, at least 6 electricians. About a week ago. This is in NP. How is work load? OK except new builds fallen off. Anyone laid off yet. No. I don't expect the sparky to know much about what's going on in the business but the no layoff indicates still work available.

Also the comment in the last qtr CPI showing construction still contributing to inflation. Don't know if that's material only or material and labour.

Seems to me a disconnect somewhere between what's happening on the ground, job ads and the CPI.

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Where I am in Nelson it's across the board. Just heard yesterday a subcontractor laid half their workforce off. Not the first time I've been told such stories either. Each region seems to be at a  different stage. Auckland still ticking over ok but I expect they're one of the last to see the recession set in.

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Indeed. Forestry not doing much around Nelson region either after the Chinese demand is easing up. 

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I wonder how many people now facing higher mortgage repayments were banking on a new, higher paid job to cover the gap ....

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Looks like employees will have to get used to not calling all the shots again. It always stunned me that employees thought they had the right to direct those paying their mortgages..'don't bite the hand that feeds you' as they used to say. Almost no-one wants a situation where employees are treated badly, but its not good for the economy when the employer/employee roles are reversed. If employees want to be the boss, they need to risk their own capital, and I hope they succeed when they do. Our hiring intentions decreased 100% while the madness ensued (I don't need to come to work, housing speculation gains are guaranteed, and the government will cover my million dollar mortgage), but we are open to it now.

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A tough year ahead

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