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Recent job statistics highlight the tangible effects of public sector cuts on employment, especially in Wellington. The data suggests a significant shift in the job market, with over 3,000 job losses announced across government departments and agencies.
According to Trade Me’s latest data, job listings in central government have decreased by 77% year-on-year and 34% over the past three months. This decline underscores the challenges faced by job seekers in the public sector.
Wellington’s average salary has also seen a decline, dropping by 3.3% from the previous quarter to $72,062. This represents the most substantial percentage decrease across all regions, reflecting the economic strain resulting from the public sector cuts.
Despite the challenging environment, job applications in Wellington have increased by approximately 18% compared to the final quarter of 2023. Matt Tolich from Trade Me commented on the situation, noting that Wellington is starting to feel the repercussions of the public sector job cuts.
While the overall number of job listings rose by 11.7% in the three months leading up to March, Tolich emphasized that the job market remains tough for many candidates. He mentioned that employers are still actively hiring, with notable increases in job listings in sectors such as agriculture, office administration, and hospitality and tourism.
The overall number of job applications also saw an uptick, rising by 15.4% for the quarter. This increase can be attributed to migration and individuals who have lost their jobs, according to Tolich.
With employers having the upper hand in the current market conditions, a Trade Me survey revealed that 95% of businesses plan to hire at least one more person in the next 12 months.
While Wellington faces a challenging employment landscape, other regions are also feeling the impact. In Auckland, job applications surged by 160% year-on-year, driven by increased migration and job layoffs.
Tolich concluded by stating that job listings are down across all regions, while application numbers are on the rise, indicating a shift in demand and supply dynamics in the job market.”