Christchurch economy: The winners and losers

Monday, 7 July 2025

Aotea Gifts in central Christchurch has seen a lift in tourist spending, driven by increased international arrivals and favourable exchange rates.

Christchurch is experiencing a two-speed economy, where growth in tourism and manufacturing contrasts sharply with rising unemployment and retail losses, new data shows.

For some, it feels like the city is heading in two directions at once. Some businesses are expanding, hiring and celebrating strong demand, while others are cutting hours, laying off staff or shutting their doors altogether.

The same is true for individuals. If you're struggling to find work or cover the basics while your neighbour seems to be getting ahead, it’s not just perception. It’s what the data shows.

ChristchurchNZ, the city’s economic development agency, reports that in the first quarter of the year, some sectors are gaining strength while others continue to decline.

Manufacturing is experiencing solid growth and international tourism is bouncing back, but retail is under real strain and the job market remains punishing for many workers.

Canterbury may have taken the top spot in the ASB Regional Scoreboard, but that doesn’t mean everyone is doing well.

Whether your business is winning or losing depends heavily on which sector you’re in. Whether you as an individual are thriving or struggling often comes down to your industry, your age, and sometimes just luck.

The data shows some sectors adding thousands of jobs while others shed workers. Some businesses are hiring and expanding while others are cutting hours or closing down. Some workers are enjoying job security and pay rises, while others are competing desperately for fewer and fewer positions.

Here’s who’s laughing all the way to the bank, and who’s counting every dollar, in Christchurch’s uneven recovery.

Winners

Businesses catering to overseas tourists

The number of international visitors coming to Christchurch is rising.

International tourists spent $117 million in Christchurch over just three months, up 8% from last year.

The reasons are stacking up. The New Zealand dollar is weak and hotels are eager for bookings. Christchurch is significantly cheaper than Auckland, coming in at 31% less expensive. More than 55,000 international visitors arrived at Christchurch Airport in January, the second-biggest month since Covid.

“In general, it's steady on last year, but there are definitely more people around, so it's really good to see,” said Richard Hanson, co-owner and managing director of Aotea Gifts, a souvenir shop in Christchurch.

Aline Calado, left, store manager of Aotea Gifts in Cashel Mall, Christchurch, with her workmate Jenny Wang. The business has seen an upsurge in customers lately.

“There's been a slight lift in spend as well, but a lot of that is exchange rate based.”

January also delivered a noticeable bump. “So Chinese New Year was a little bit earlier this year, which would have put it into January, but it was not nearly the big obvious lift that you'd see pre Covid.”

Christchurch Airport is now gearing up for even more international arrivals. New and expanded flight routes are expected to deliver a major boost to the region’s tourism sector.

“I’m really excited by that additional flight capacity that's been announced into Christchurch,” Hanson said. “When there are more planes, there's definitely more opportunity.”

Renters get their first win in years

Weekly rent has dropped slightly in Christchurch.

For the first time in a while, Christchurch renters have some good news. Weekly rent dropped from $558 to $550. It may only be $8, but that adds up to more than $400 a year.

After years of relentless price increases, this could be the first sign the tide is turning.

You still need nearly a quarter of your income to rent in Christchurch, but at least things aren't getting worse.

Economists say the cause of the drop is unclear. It could be increased rental supply, reduced demand, or economic pressure on landlords. Whatever the reason, it’s a welcome pause in the rental squeeze.

Factory workers are back

More jobs have become available in central Christchurch over the last year, particularly in the healthcare sector.

Manufacturing is growing again for the first time in two years. If you work in a factory, food processing plant or production role, your job security just improved.

The manufacturing index hit 56.9. Anything above 50 signals growth.

Hiring is under way, and Canterbury is outperforming other regions. But the recovery is still delicate. Canterbury’s index held strong at 51.7 in June, while the national figure has already slipped back into contraction at 47.5.

City workers hit the jackpot

Karl Dean, Federated Farmers’ national dairy chairperson, says after a couple of “average years”, dairy farmers are doing well.

The central city added 3300 jobs in the past year. If you work in healthcare, finance or professional services in the CBD, there are plenty of opportunities.

Healthcare alone added 620 jobs, with finance and professional services not far behind. One in five jobs in Christchurch are now based in the central city, and that share is growing quickly.

Farmers are doing great

Service industry businesses across Christchurch, including cafés, salons and retail outlets, are facing falling demand and rising costs amid economic uncertainty.

While many in the city are doing it tough, rural Canterbury is booming. Dairy prices are up, commodity exports are strong, and farmer confidence is soaring.

Canterbury has the highest consumer confidence in the country. It’s just that the optimism is concentrated in the countryside, not the city.

Federated Farmers national dairy chairperson Karl Dean, who share milks near Leeston in Canterbury, said dairy farmers are certainly doing well “after a couple of average years”.

They are using the extra dollars to do deferred maintenance, replace equipment, or pay down debt, he said.

But it’s a different story for North Canterbury’s sheep and beef farmers hit hard by the recent drought, who are still in recovery mode despite high red meat prices, Dean said.

“People have to bear in mind that when there is a severe weather event, that does impact farm production and performance. It does come in swings and roundabouts.”

Losers

Job hunters in hell

It’s bleak out there. More than 15,000 people in Christchurch are now on unemployment benefits, up 10% on last year. That’s about the population of Rangiora all looking for work.

Emma Mettrick co-owner of Twenty Seven Steps, says people could support hospitality businesses in winter by coming in for something, “even if it’s just a bowl of soup”.

Online job ads have dropped by 15% compared to a year ago, meaning there are far fewer roles to go around.

In one recent recruitment drive, 1600 people applied for jobs at Christchurch’s two major civic builds, One New Zealand Stadium at Te Kaha and the Parakiore Recreation and Sport Centre.

Service industry is struggling

Hospitality, retail and customer service workers are under pressure. The services index dropped to 49.7. Anything under 50 signals contraction.

Cafes, shops, salons and even professional firms are cutting hours and freezing hiring.

And it’s not improving. The services index fell further in May to 43.8, the lowest point since June 2024. Business owners are reporting fewer customers, delayed spending decisions, and growing caution in the face of inflation and uncertainty.

Emma Mettrick, co-owner of central Christchurch restaurant Twenty Seven Steps, said the last winter was their toughest on record, but this winter is on track to be worse.

Costs are rising for retailers in Christchurch.

“There’s definitely a lot less customers. We used to always be busy before show, but now people don’t have the money for dinner before a show. The cost of living keeps getting harder and harder.”

At the same time, restaurants and cafes face higher costs for power, phone and food, she said.

After 16 years in hospitality, they are used to ups and downs, Mettrick said. They plan to offer “brown bag” wine specials to reduce stock levels, and are not taking money out of the business for themselves.

She said people could help out hospitality businesses through winter by “just coming in for something, even if it’s just a bowl of soup and not a full meal”.

Shop owners getting squeezed

Retailers in Christchurch lost $9.1m in sales over the past year. Customers are pulling back while costs for rent, insurance and electricity continue to rise.

The worst hit sectors include home improvement stores, department stores and car dealers.

People are sticking to essentials like groceries, personal items and the odd coffee. Everything else is being trimmed from budgets.

Young workers: double trouble

If you’re young and looking for a job, you’re up against it.

Health and hospitality, two sectors where young people often find their first jobs, have cut employment by 27% and 24% respectively.

And now younger workers are competing with more experienced candidates who have also been laid off. Entry-level roles are scarce, and businesses aren’t keen to invest in training during uncertain times.

What it all means

The current economic landscape in Christchurch is uneven, with prosperity concentrated in select sectors and growing challenges for the rest.

If you have a secure job in manufacturing, healthcare, finance or farming, chances are you’re doing well or even thriving. But if you’re job hunting, running a small business or trying to get onto the property ladder, you're facing strong headwinds.

Experts at ChristchurchNZ say any recovery will be “fragile and slow”.

Consumer confidence has dipped into pessimistic territory, creating a vicious cycle. When people expect tough times ahead, they spend less, which makes conditions even tougher for businesses.

Right now, your economic fate in Christchurch depends less on how hard you work, and more on which group you belong to.

* Additional reporting by Liz McDonald