Wellington job market? It’s a jungle out there

Saturday, 31 May 2025

The capital’s tough job market has been likened to the Hunger Games on steroids, with even low skilled roles attracting hundreds of applicants ‒ and recruiters warning of worse to come.

It comes as new figures from SEEK confirm no change in the number of job ads in the Wellington region month-on-month in April, in contrast to a 10% rise in Manawatu, a 5% jump in numbers in Otago and 3% growth in Auckland. Applications per job ad were down on the previous month, but up 18% year-on-year.

Meanwhile MBIE’s March quarterly report on job vacancies shows Wellington had big falls in vacancies advertised online in most industries, occupations, and skill levels both annually (-20.4) and over the past five years (-35.8).

Job hunters say the situation is dire; recruiters are warning it could get worse.

One IT project manager The Post spoke to, on condition he wasn’t named, said he was so desperate for work he was looking into becoming an Uber driver. He had also spent time in Brisbane applying for different jobs.

Another job seeker, also a project manager, said vacancies were so scarce she had heard of people competing with between 200 and 400 other candidates for some roles.

They are two of the 156,000 Kiwis currently unemployed, a figure that even Finance Minister Nicola Willis has said is unlikely to change until at least the latter part of the year and forecasters are predicting could rise by 15,000 to 30,000 over that same period.

Among the gloom merchants, albeit an apologetic one, is Infometrics chief forecaster Gareth Kiernan.

“It’s pretty hard to find any good news around the Wellington job market at the moment because of the outsized role that the public sector plays in the region’s economy. Sometimes in the past when we’ve seen a change in government lead to pressure on public sector employment, the effects on the region’s labour market have been mitigated by an increase in work being done by contractors or consultants instead.

“However, the cuts on this occasion have been across both worker numbers and spending, meaning that both public sector and private sector employment have come under pressure.”

Last week’s Budget reinforced that the Government wasn’t about to change direction any time soon in terms of its push to keep finding areas to make cost savings, he said.

Any recovery over the next six months or so looked likely to be export-driven, meaning that regions with a large agricultural component to their economy were likely to lead the recovery.

“Previous experience suggests it can be 12-18 months before those positive effects of higher export incomes and increased spending flow through from the provinces to the main urban centres. In this regard, Wellington could well lag the turnaround across much of the rest of the country.”

Bridget* had a two-year contract cut short last year, a victim of the Government’s public sector overhaul. Because it was fixed term she didn’t qualify for any redundancy payments.

She has spent the last 11 months looking for work, applying, alongside hundreds of others, for numerous positions.

“I’ve heard of 200 to 400 applying for the same role. There are lots and lots of really good people out there, and not enough jobs. I’ve managed to get a couple of interviews through SEEK and three through recruitment agencies, which is unheard of for me, given the amount of jobs I’ve applied for.

“But when you’re getting rejection after rejection, that has a flow-on effect and you just start to give up.”

She has applied for co-ordinator roles and been told she was overqualified. “I’m happy to take a step back. It’s not about the money, it’s about your mental health as well. I’ve heard of people applying for jobs at Bunnings who don’t get a foot in the door because, again, they’re over qualified.“

Bridget is on a benefit and has had to take a mortgage break so she can cover other weekly bills. Friends have helped financially and she has picked up some gardening work, but asking for help has been galling.

“I have become the queen of budget meals and try not to waste anything. Winz has paid for [emergency dental work] … it’s quite shameful not being able to pay for stuff like this when I have been independent for so long.”

James*, who has been searching for a job since being made redundant in January ‒ the second time since Covid ‒ spent three months in Brisbane looking for work before returning home because of family commitments.

He described the job market in Wellington as “badly broken” and his situation as “near desperation”.

“There is no job market here. The problem is most companies don’t hire people. They hire skills, and as soon as they don’t need those skills any more they make everyone redundant.

“It’s like if you were a taxi company and and you’ve got a whole bunch of taxis that are Fords but you’re changing [the fleet] to Mazdas; you want to hire people who have worked on Mazdas.”

He had become jaded with what he saw as an overly lengthy, cookie cutter recruitment process and a lack of communication from both agencies and employers. He had taken to “playing bingo” when writing cover letters, using words and phrases from ads rather than individually structuring his own to cut down on potential rejections.

“I’ve spent up to a couple of hours writing cover letters, and then it’s like, well has he used this word or that one. So now I just copy whatever’s in the blurb.”

James believed the uncertainty around AI was also influencing hiring activity with employers hesitant to take on new staff during a period of rapid change. “AI is going to change the market, but right now no-one knows how.”

Rebecca Thomson knows just how tough things are, having been out of work for seven months last year. While she has had better luck in 2025, picking up some freelance and contracting work, she noted the job scene did still “seem very much like the Hunger Games…”

“Subdued” was the word used to describe it by Shay Peters, chief executive of recruitment firm Robert Walters, noting the hoped-for mid-year upturn had not eventuated.

He warned things would get worse before they got better.

“One of the key factors currently affecting the Wellington job market is the ongoing lack of public sector spending, which continues to have a significant impact on the labour market as well as all related services and hospitality sectors.

“Additionally, there is growing concern across several ministries that further cuts may still be on the horizon. This uncertainty is contributing to a broader decline in employer and candidate confidence across the labour market.”

The imbalance between supply and demand had led to people scrambling to apply for whatever work was available, signalling a growing urgency among job seekers that also highlighted the challenges employers faced in finding the right fit among a saturated talent pool, Peters said.

“In many cases, candidates are applying for positions well below their level of experience and expected salary, simply in the hope of securing work.”

The brain drain was another ongoing challenge: “Many of those relocating are mid-to-senior level managers or subject matter experts, often with young families, looking to establish a new life. In many cases, they’re unlikely to return.”

The sectors with the largest fall in online vacancies across the year in Wellington included healthcare, down 34.3%, construction, -30.3% and sales, -26.1%, according to MBIE.

Retail NZ Advocacy Manager Ann-Marie Johnson confirmed the dearth of job listings was having an impact on that sector.

“Wellington retailers are reporting a noticeable rise in retail job applications, with some roles attracting hundreds of candidates.”

Many did not have the experience or skill sets that retail employers were looking for, particularly at the managerial level, while others had no retail experience but were seeking new opportunities following the public sector cutbacks in Wellington.

There was also a noticeable trend of potential candidates and current staff considering or pursuing opportunities overseas, particularly to Australia, Johnson said.

Beyond Recruitment’s Ben Pearson also pointed to the outflow of local talent as problematic, with the lure of Australia continuing unabated among early to mid-career professionals.

“Many who made the move a year or two ago report doing better and being happier across the ditch.”

He said while some recruiters were cautiously optimistic, with areas such as policy and procurement showing a pick-up, any momentum could be short-lived given the looming 2026 general election.

That sentiment was echoed by Peters: “People are often talking about being in a downturn, I don’t believe we can view this as a downturn any longer, this is now normality, and all industries will need to find a way of moving forwards with this as the backdrop.

“As a city, Wellington needs to shift its mindset and focus on pro-actively creating value and uncovering new opportunities to ensure it remains a vibrant, successful region.”

*Names have been changed to not further jeopardise job prospects.