Employment Hero Releases First New Zealand SME Jobs Report, Pointing To Stabilisation Amid Mixed Sentiment

A youth boom, a wage trap, and a confidence crash, New Zealand’s jobs engine is spluttering back to life.

New Zealand, 9 September 2025 - Employment Hero, the global authority on employment, has released its inaugural Annual Jobs Report, New Zealand’s first and only employment snapshot dedicated to SMEs. Powered by 12 months of aggregated and anonymised real-time data from over 350,000 businesses and 2.5 million verified employees globally, alongside a YouGov survey of 3,635 workers, the Annual Jobs Report uncovers how shifts in the labour market are reshaping the way Kiwis live and work.

In New Zealand, SME employment has levelled out after the 2024 slowdown, averaging around ~1% year on year for much of 2025 and rising to +2.4% in July; wages are +3.9% YoY and hours worked are +1.2% YoY.

“We’re seeing early signs of balance return to New Zealand’s SME jobs market. Youth hiring and steady wages are creating more entry points into work, and businesses are using flexible staffing to manage demand while staying focused on productivity and costs. Our dataset captures both sides of the employment marketplace in real time, so leaders can see where pressure is building from casual pay growth and capability gaps to regional capacity and where momentum is emerging, from South Island job creation to stronger pathways for younger workers,” said Ben Thompson, Co-Founder and CEO of Employment Hero

Renewed stability in job market

Despite the improvements in employment, more than half of New Zealanders (55%) believe employee conditions are worsening, while only 17% believe things are improving. A majority (58%) reported receiving a pay rise in the past 12 months, yet wage stagnation for many continues to intensify cost of living pressures.

This sense of unease reflects global dynamics across Australia, the UK, and Canada. While employment is rising in all markets (up 5.8% in Australia, 2.6% in the UK, and 2.4% in New Zealand), workers consistently report insecurity.

Nearly half of employees worldwide (45%) say they would not feel confident finding a new role within three months if they lost their current job. In New Zealand specifically, 53% lack confidence, underscoring that even with modest job growth, employees feel squeezed.

Casual work is on the rise, but pay is stagnant

Casual jobs are surging, but pay is collapsing. In July 2025, casual employment rose 0.74%, but average hourly pay fell 1.3%, according to Employment Hero data. Compare that with full-time workers whose pay rose 4.6%, or part-timers at 5.7%, and a clear imbalance emerges. Casual work is absorbing labour market pressure, but it’s not protecting workers from inflation or insecurity.

Youth employment: rising but precarious

SMEs are increasingly turning to younger staff, with under-18 hiring leading the charge. This mirrors the global “new blueprint for work,” where Gen Z are financially pragmatic but also the most mobile, willing to switch jobs, industries, or even countries in search of growth. However, in New Zealand as elsewhere, many of these roles are casual or low-paid, raising questions about sustainability.

South Island drives national employment expansion

Otago's 19.4% surge makes it the fastest-growing SME job market in the country this year. Regionally, SME employment growth is being driven by the South Island, which recorded 5.4% year on year gains compared with just 0.6% in the North Island. Otago has emerged as an unexpected hotspot, fuelled by tourism recovery, agriculture, and regional investment. This regional dynamism reflects broader global trends where smaller markets and non-capital cities are shouldering more of the employment rebound.

Weak confidence in the market

Confidence, however, remains weak. In New Zealand, 62% of workers said they now prioritise job security over ambition, higher than Australia’s 57%. Older workers and part-timers feel this most acutely, with 64% of over-55s doubting they could find another role quickly. Yet those who started a new job in the past 12 months were 33% more likely to feel optimistic, suggesting mobility remains a key lever for restoring confidence.

Small businesses under pressure

For SMEs, the pressure extends to skills and training. Just over half (52%) of employees believe their employer provides good training and upskilling opportunities, with older workers the least likely to agree. This aligns with global findings that small businesses, while central to employment, often lack the resources to provide consistent development pathways.

Employment Hero’s Annual Jobs Report paints a picture of a labour market in flux. Resurgent job growth, strong youth participation and regional expansion offer grounds for optimism, but wage stagnation, casualisation, and weak job confidence underscore the fragility of recovery.

“The sharp slowdown that began in early 2024 has largely run its course. We’re likely to see a modest pick up in the second half of 2025, enough to help stabilise unemployment after it reached a nine-year high in the June quarter. Looking into 2026, I would expect incremental improvement rather than a surge, with steady headcount, gradual gains in hours, and wage growth at more sustainable rates than the peaks of recent years. If operating costs continue to ease and capability investment lifts, SMEs will be better placed to convert flexible hours into more permanent roles. The main risks are softer external demand and weather-related disruptions, particularly for agriculture-exposed regions,” said Independent economist Saul Eslake.

About Employment Hero

Employment Hero is the global authority on employment, offering a world-leading Employment Operating System (eOS) that simplifies and optimises every stage of the employment process. Its award-winning platform combines HR, payroll, recruitment, and employee engagement tools with the groundbreaking employment superapp, EH Work, which integrates career management and financial wellbeing.

Serving over 350,000 businesses and managing more than 2.5 million employees worldwide, Employment Hero reduces administrative burdens by up to 80%, enabling organisations to focus on their goals and create more productive, engaged teams. By revolutionising the employment marketplace, Employment Hero is making employment easier, more valuable, and rewarding for everyone.

About the Employment Hero Annual Jobs Report

The Employment Hero Annual Jobs Report is a flagship research series delivering powerful insights into jobs, wages, hiring trends, and workforce sentiment across Australia, New Zealand, the United Kingdom, and Canada.

Built on real-time, aggregated, and anonymised data from over 350,000 businesses and 2.5 million employees globally, the report combines Employment Hero’s proprietary platform data, an independent YouGov Plc online survey of 3,635 employed adults across four markets, and expert commentary from leading economists. The result is one of the most trusted and comprehensive views of the employment landscape.

For the YouGov Plc. survey, the total sample size was 520 employed adults. Fieldwork was undertaken between 7th - 18th August 2025. The survey was carried out online.

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