SEEK says hiring activity has noticeably picked up; 'We have not seen such broad-based growth in a very long time'

Clear signs are emerging that the jobs market is turning for the better.

The most recent figures from Statistics NZ's Monthly Employment Indicators (MEI) show that in July there was a seasonally-adjusted 0.2% rise in filled jobs, following on from a 0.1% rise in June. That's the first time we've seen consecutive monthly gains in nearly two years.

And now employment marketplace SEEK, in its latest SEEK NZ Employment Report, says that "after a long period of stasis", job ad volumes have begun to rise, up 1% month on month.

Additionally the prior two months have also been adjusted to 1% increases respectively.

"Annual growth has now risen 4%, the first time job ads have grown year-on-year since November 2022. Applications per job ad were up 2% in July, which is a new record high," SEEK said.

The official unemployment figures for the June quarter came out on August 6 and showed the rate of unemployment rising to 5.2% from 5.1%. The Reserve Bank (RBNZ) thinks it will go higher, to 5.3% in the quarter we are now in.

After the pandemic and the closed borders saw unemployment virtually disappear, with the rate hitting a low of 3.2% at the end of 2021, the labour market has been slackening quickly as the market responded to interest rates driven up by the Reserve Bank, as it sought to rein in runaway inflation. Unemployment was 4% by the end of 2023, but then rose rapidly during 2024, ending the year at 5.1%.

Most economists see unemployment still going a little higher yet and then reducing only slowly - but the latest indications direct from the labour market are now suggesting, I would say, that the recovery may be coming upon us a little more quickly.

Back to SEEK...Their country manager Rob Clark says hiring activity has "noticeably picked up this quarter following months of little to no change".

"We have seen incremental increases the past three months, with data adjusted," he said.

“There was increased activity across most industries and all of the larger regions in August. We have not seen such broad-based growth in a very long time," Clark said.

"Auckland has now recorded two months of rising ad volumes, which supported the national uptick more broadly, while Otago, Wellington & Canterbury have risen month-on-month and year-on-year."

Clark said "solid growth" in our largest industries of Manufacturing, Transport & Logistics (3%) and Trades & Services (2%) were key contributors to the overall rise in ad volumes in August. Only two industries recorded a month on month decline: Farming, Animals & Conservation (-1%) and Government & Defence (-1%). However, annual ad volume in the latter has risen the fastest (21%) reflecting swift growth in the year to May, before more recent decline.

In terms of the annual picture, Clark said hiring within Real Estate & Property has been increasing steadily for the past 13 months, and along with Government & Defence, is among a number of industries to have recorded double-digit annual growth in job ads.