NZ Salaries Update: What employers need to know - Mar 2025

Published 1 April 2025 | 2 min read

New Zealand’s job market is shifting, and employers have more choice than ever. Job applications have surged by 49%, while job opportunities have declined by 17%.

This means businesses can be more selective, but it also requires refining hiring processes to manage high application volumes effectively.

Meanwhile, advertised salary growth has slowed to 2.6% annually, and some industries—like HR and recruitment—are seeing salary declines.

More applicants, fewer roles

With more candidates competing for fewer positions, businesses are in a stronger position when it comes to hiring decisions. Many are turning to temporary contracts, which accounted for 88% of all placements in 2024.

This trend suggests employers are prioritising flexibility over long-term commitments, allowing them to adapt to economic conditions while securing the right talent when needed.

The questions employers are asking

Are salary expectations shifting?

Advertised salary growth has slowed, and HR and recruitment salaries have declined by 0.2% over the past year.

Which industries are stlil paying more?

Science & Technology led with a 7% salary increase, followed by Sport & Recreation (6.5%) and Government (6.3%).

Is this a temporary hiring shift?

While application volumes are still high, they began stabilising in late 2024, suggesting a potential correction in 2025.

How should businesses adjust their hiring strategies?

With a greater talent pool available, employers should refine their selection processes and leverage recruitment technology to find the best candidates efficiently.

The key insights for Kiwi employers

• Salary growth is slowing – Advertised wages are still increasing but at a much lower rate than in previous years.
• Temporary roles are on the rise – Businesses are favouring flexibility over long-term commitments, with temp roles making up 88% of placements.
• Job applications have surged – The talent pool is larger than ever, making it easier for employers to access skilled candidates.
• Some industries are still growing – Science & Technology, Government, and Sport & Recreation continue to see strong salary growth despite overall market trends.
• Regional hiring disparities exist – Canterbury saw the fastest wage growth (3.2%), while some parts of the South Island barely grew (0.5%).
  
  

Hiring moving forward

New Zealand businesses have a good opportunity to secure top talent at value in 2025. With more applicants per role, refining recruitment processes and leveraging expert advice through Salary Sizing will be key to efficiently identifying the best candidates.

Employers who strategically balance temporary and permanent hiring will benefit from a flexible workforce while maintaining financial stability. Taking a proactive approach to hiring now will set businesses up for long-term success. 

How to compensate roles at a competitive rate 

Salary sizing, or salary benchmarking, is the process of assessing salaries / wages for positions using market data, role responsibilities, internal pay structures, and organisational goals.

Learn more ›