Kiwis Feel Job Market Squeeze
New Zealand’s job market is tighter than ever before, with an average of 43 candidates per job in Q4 2024. Some cases report hundreds of applicants for one job. Reports show that some industries are overwhelmed by the number of applicants, while others are struggling to attract talent amid the noise.
Martin Herbst, CEO of JobAdder, emphasised that the hiring landscape is shifting.
“This surge in job applications highlights a fundamental shift; recruitment is no longer about attracting candidates but managing high volumes and identifying quality talent. Agencies must rethink their hiring strategies to handle this evolving landscape efficiently.
Job application growth slowed and slightly declined towards the end of 2024, following seasonal trends where Q1 consistently sees a spike as job seekers re-enter the market post-holidays.
“We’re seeing application numbers start to adjust in New Zealand. It will be important to monitor whether this slowdown is part of a broader trend or a temporary fluctuation.
The decline in Q4 may signal a shift in candidate behaviour or reflect broader economic conditions influencing hiring and application volumes. If this trend holds, application volumes could stabilise in 2025, easing pressure on recruiters.”
In 2024, the average number of job applications per position at recruitment agencies has slowed and even declined in Q4. However, it remains significantly higher than in previous years, rising by an average of 49% from 2023 and 261% from 2022.
More Applicants, Fewer Jobs
Despite the surge in job seekers, the number of available jobs per recruitment agency has dropped by approximately 14%, decreasing from 45.1 in Q4 2023 to 38.7 in Q4 2024—the lowest level in three years.
While there was slight growth from Q1 to Q2 in 2024, overall job creation remains below 2022 and 2023 levels, highlighting a tightening labour market.
Among the regions analysed, New Zealand saw the most significant decline in job creation, with a 17% decrease in 2024, outpacing declines in Australia and the United Kingdom.
Declining job advertising is also to blame for the squeeze, with a 2% decline in February 2025. Seek reports that infrastructure and service-related roles are driving job advertisement growth in New Zealand. The public sector has declined, in contrast.
It’s minor, though. Seek says that since July last year, ads have remained relatively stable, aside from some noise month-to-month. This has been the most prolonged period of relative stability since pre-COVID.
Seek NZ country manager Rob Clark says, “After two years of steady and significant decline in job ad volumes, the past eight months have been broadly flat. While we may not be out of the woods yet, the days of significant, broad-based drops in worker demand should be behind us.
“For job seekers, we know that the start of the year is a peak time to jump back into the job hunt, and the data shows it did, with a 5% rise in applications per job ad, coinciding with a rise in ad volumes in January.”
Temporary Jobs Dominate
JobAdder reports that temporary and contract roles comprise 88% of placements in 2024, up steadily from years prior. Now, just 12% of placements are for permanent roles, down from 14% in 2023 and 18% in 2022.
Businesses are prioritising workforce flexibility amid economic uncertainty.
“The job markets reflect broader economic conditions, and 2024 has been a challenging year for New Zealand. Employers are hesitant to overcommit to new hires while relying on temporary staff to manage fluctuating workloads.
“However, there are signs of positive change. Permanent roles saw a slight 2% increase in Q2 2024 compared to the same period in 2023. This shift suggests improving sentiment in the market, potentially indicating a return to more permanent hiring as businesses regain confidence,” he says.
Finding the Best Talent
With job applications at an all-time high, businesses are drowning in résumés. The challenge now isn’t attracting candidates—it’s identifying the right ones. Recruitment agencies and employers must refine their strategies to ensure they’re selecting quality over quantity.
Automated applicant tracking systems (ATS) can help filter out unqualified candidates early on, but human oversight remains critical. Relying solely on AI risks overlooking strong candidates who may not use the exact keywords an algorithm expects. A hybrid approach—using technology to pre-screen but recruiters to make final decisions—balances efficiency with accuracy.
“With AI-assisted applications, agencies are being inundated with applications. Sifting through job applications from underqualified candidates wastes valuable time and resources,” Martin says.
“Proactive strategies leveraging internal databases offer a clear competitive edge in today’s fast-moving job market.
“To stay ahead, recruitment agencies must reassess their sourcing strategies to ensure efficiency and long-term success.”
Second, prioritise skills over experience. In a crowded job market, the best candidate isn’t always the one with the most years in a role. Instead, focusing on transferable skills, adaptability, and problem-solving abilities can uncover hidden talent that may otherwise be dismissed.
Third, be clear about job expectations. A vague job listing invites hundreds of unqualified applicants. Instead, detailed descriptions specifying required skills, preferred backgrounds, and company culture can naturally filter out those who aren’t the right fit.
Fourth, adjust hiring timelines. With so many applicants, it’s tempting to take longer to make decisions. However, good candidates won’t wait forever—especially in high-demand industries. Establishing a structured hiring timeline prevents losing top talent to more agile competitors.
Finally, invest in employer branding. The best candidates have options, even in a competitive market. Companies that showcase a strong workplace culture, growth opportunities, and work-life balance will attract higher-quality applicants over those focused solely on salary.
What This Means for Job Seekers
These strategies for recruitment agencies clue in job seekers. For job seekers, understanding these hiring strategies can provide a competitive edge. Since many employers now prioritise skills, tailoring applications to highlight problem-solving abilities and adaptability can set a candidate apart.
Rather than relying on generic résumés, applicants should tweak their CVs for each role, emphasising keywords from the job description to pass automatic screenings.
Networking also becomes more crucial. When companies are overwhelmed with applications, a personal referral can push an application to the top of the pile. Job seekers should engage with industry professionals, attend networking events, and stay active on LinkedIn.
With employers working to streamline hiring, candidates must be proactive, concise, and strategic to stand out in a sea of applicants.
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