Labour Market Shows Positive Trends as Job Applications Decline

The labour market in New Zealand is showing promising signs of improvement as it heads into 2026, marked by a decline in job applications and a rise in wage growth. According to the latest employment and salary reports from SEEK NZ, job advertisements increased by 1 percent in November compared to the previous month, marking the fifth consecutive month of growth and a significant 9 percent increase year-on-year.

Rob Clark, the country manager for SEEK, noted that the gains, while modest, indicate a shift towards a healthier labour market. He stated, “While the market remains challenging for many job seekers, the consistency of this growth suggests we’re now in a genuine recovery phase rather than simply stabilising.” In a noteworthy development, the number of applicants per job fell by 1 percent, the first decline since January 2022, suggesting reduced competition for positions.

Wage Growth Accelerates

Wage growth is also on the rise, with salaries increasing by just under 1 percent in the three months ending in November, marking the fastest quarterly growth in the past 18 months. Clark highlighted, “A relatively broad pick up in advertised salaries across the country points to a more positive outlook for the labour market as we head into 2026.” The annual average wage growth reached 2.5 percent, with the South Island experiencing the most robust increases.

Particularly noteworthy is the remarkable 9.7 percent annual rise in salaries for positions in the Real Estate and Property sector, a trend that Clark attributes to firms preparing for a potential upturn in the housing market. Other sectors showing strong demand include healthcare, legal services, mining and resources, and media, all of which reported salary increases of 4 percent or more.

According to Stats NZ, overall wages grew by 2.1 percent for the year ending in September, reflecting broader economic trends.

Regional Discrepancies in Job Growth

The SEEK reports align with other economic indicators that highlight the South Island as a leader in recovery and job creation. The strongest annual job advertisement growth was observed in Southland, which saw an increase of 27 percent, followed by Otago at 17 percent and Canterbury at 16 percent. These regions experienced robust growth in construction, trades, manufacturing, and transport sectors.

In contrast, both Wellington and Waikato reported double-digit growth, while Auckland has struggled, showing no monthly growth and only 1 percent annual growth. Canterbury led the country in annual salary growth at 3.2 percent, with areas outside of Auckland and Wellington in the North Island achieving a growth rate of 3 percent.

Clark summarized the situation, stating, “For candidates, the message is one of cautious optimism – the market is clearly improving, but that improvement is uneven across regions and sectors.” As New Zealand moves forward, these labour market indicators suggest a potential for continued growth and recovery in the coming year.