Westpac McDermott Miller Employment Confidence Survey shows that despite a slight lift, confidence remains at the low levels seen in the aftermath of the first Covid lockdown in 2020

Confidence in the jobs market has risen - but only slightly and it remains at low levels.

The quarterly Westpac-McDermott Miller Employment Confidence Index (ECI) rose 1.1 points to 89.9 in the September quarter.

But despite that rise, confidence about the state of New Zealand’s labour market remains close to the lows seen after the first Covid lockdown in 2020. (A level below 100 indicates that there are more households who are pessimistic about the outlook than those who are optimistic.)

"It’s still a tough market for job seekers," Westpac senior economist Satish Ranchhod said.

“The unemployment rate is already at 5.2%, and we expect it will rise to 5.3% through the back part of the year. Against that backdrop, around two-thirds of those we spoke to told us that it’s hard to get a job, and most expect job opportunities will remain limited over the year ahead.”

Ranchhod said that with a soft economy and ongoing job losses, job security "is a big concern for many New Zealanders".

"Nearly a quarter of those we spoke to think their job will be less secure over the year ahead. Job security is a particular concern for those aged under 30 and those aged over 50. Women are also feeling less secure about their jobs compared to men."

Ranchhod said confidence in the jobs market is low across all regions.

"However, those respondents in our dairying powerhouse regions, including Southland, Otago and Waikato, are less pessimistic.

"Firmness in commodity export prices has been boosting incomes, and that’s helping to support spending and the demand for labour."

Market Research Director of McDermott Miller Limited Imogen Rendall said confidence among employees working in both the private and public sectors remains firmly in pessimistic territory this quarter.

Private sector employees’ confidence is up this quarter with an increase of 6.6 points to 91.6 ECI, while public sector employees’ confidence has reduced 2.1 points down to 94.1 ECI.

"Both private and public sector employees continue to remain particularly concerned about the current job market, with more than six in 10 saying that jobs are currently hard to get," she saidl.

The survey was conducted over 1-12 September 2025, with a sample size of 1,550. An index number over 100 indicates that optimists outnumber pessimists. The margin of error of the survey is 2.5%.