Businesses are hiring again but are showing signs of caution amid ongoing cost pressures ahead of the Christmas period, according to a new report from Employment Hero.
Its October Jobs Report revealed that employment went up 2.8% month-on-month. It also increased 4.5% year-on-year and six per cent quarter-on-quarter.
Hiring leaned more towards casual roles, which went up 4.48% MoM and 12.6% YoY. South Island led with an 8.5% increase in employment YoY, surpassing North Island’s 1.6% annual increase.
By sector, construction and trade services posted the biggest annual employment growth with 13.1%, while the science and tech sector logged the highest monthly growth with 4.8%.
“Jobs are returning with force after a slower few months,” said Ben Thompson, co-founder and CEO of Employment Hero, in a statement. “Businesses are hiring again, but they’re still cautious about how much work they’re giving people.”
According to the report, average hours worked fell 0.1% MoM and 0.6% YoY. Median wages also dipped 0.1% MoM and 1.4% QoQ to $35.10 per hour.
The dip in hours worked despite a spike in employment indicates that many Kiwis are taking on multiple jobs to stay afloat, according to Thompson.
“Employers are still doing what they can to stay competitive amid inflationary pressures, but layers of legislation and increasing cost of compliance mean it’s never been a more expensive or confusing time to be an employer,” he added.
“Businesses aren’t pulling back, but they are feeling restricted and doing what they can to keep their employees and their business above water.”
The findings come ahead of the busy holiday season in New Zealand, which the report said traditionally brings stronger pay packets and longer hours.
“However, 2025 may buck this trend,” the report read.
It follows earlier indications from retailers this year, where 64% said they are not planning to employ additional workers ahead of the holiday season as a response to a challenging environment.