NZ Labour Market Shows Rising Job Numbers But Deepening Skill Gaps, Shrinking Hours And Pressure On Young Workers

Auckland, New Zealand_ Global leader in HR, hiring and payroll software Employment Hero (used by more than 10,000 Kiwi businesses and 70,000 employees) has released its NZ Jobs Report for December, revealing a labour market that is growing on the surface but weakening underneath.

While total employment continues to rise, the data shows two critical fault lines emerging: New Zealand’s highest skilled sector, Science & Technology has shrunk 3.7% year-on-year, despite being one of the country’s highest-paid industries (with a median total hourly rate of $55.80). At the same time, average hours worked have fallen 4.7% year-on-year, with declines across every age group, even as job numbers increase.

This combination of shrinking high-skill capability and falling hours worked nationwide points to a labour market that continues to expand, yet losing momentum.

Neil Webster, General Manager, NZ at Employment Hero, says the disconnect between job growth and hours worked should be a wake-up call for businesses.

“New Zealand has more people in work, but fewer of the skills that drive innovation - and fewer hours being delivered overall. That’s not a healthy trajectory. If high-skill sectors shrink while hours fall, you’re building a bigger workforce but not a more productive one. The data is clear: our labour market is moving, but it’s not necessarily moving in the right direction.”

Sales, marketing & media face turbulence

Sales, Marketing & Media roles rose +6.1% MoM, but have slumped 19.5% YoY, likely driven by increasing pressure on an industry that has been gutted by structural change. New Zealand’s major media companies have collectively cut hundreds of roles amid plunging advertising revenues and a rapid shift to digital platforms, where global tech giants capture most of the spend. The closure of Newshub, deep cuts at TVNZ and NZME, and restructures across Stuff, MediaWorks and RNZ have sharply reduced demand for marketing, content and newsroom support roles.

“These cascading job losses have reshaped the entire media ecosystem, contributing to a volatile hiring environment where employers bring on talent in short bursts, then pull back as budgets tighten,” comments Webster.

Skills mismatch: Science & Technology talent is shrinking

Science & Technology roles - one of NZ’s highest-paying industries with a median hourly wage of $55.80 - fell 3.7% year-on-year.

“When your most critical capability is contracting, you’ve got a strategic challenge,” Webster says. “Construction and manufacturing are accelerating, but digital capability is sliding backwards, and that gap will cost us.”

Hours worked are falling nationwide

Average hours worked dropped 4.7% YoY, with declines across every age group, including full-time workers. Australia, by comparison, saw less of a slump at -1.3% YoY.

“This is a productivity warning light,” says Webster. “More people working fewer hours is a sign of unstable demand and employer caution.”

The casual crisis: more jobs, fewer hours

Casual employment surged +18.6% YoY, but hours for casual workers collapsed –21.2% YoY and –7.4% MoM.

“This is one of the clearest signs of strain,” Webster says. “Casuals are being hired, but the hours simply aren’t there. They’re working more jobs and not earning more money.”

Gen Z paycheques are sliding

Younger workers saw the sharpest monthly pay declines:

18–24: –2.0% MoM

25–34: –0.9% MoM

“With living costs still rising, even a small drop hurts,” says Webster. “Young workers are the most mobile and the most financially exposed, and right now, they’re going backwards.”

“If New Zealand wants a labour market that is resilient and future-ready, 2026 must be the year we invest in skills, protect hours, and support workers at both ends of the wage spectrum. The data is telling us exactly where the pressure points are,” concludes Webster.

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.

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