Southland emerges as most optimistic region as job prospects remain pessimistic nationwide
Employment confidence in New Zealand remained weak in the June 2025 quarter, according to the latest Westpac-McDermott Miller Employment Confidence Index.
The index edged up 0.5 points to 88.8, continuing a trend of minimal movement in the past year. A reading below 100 indicates that more households are pessimistic than optimistic about the labour market.
Employment confidence remains close to the lows last seen after the initial Covid-19 lockdown, according to the report.
Households reported continued difficulty in accessing job opportunities. A net 50% of respondents said employment opportunities were “hard to get,” a slight improvement from 52% in March. Expectations for job opportunities in the year ahead declined, with the net figure falling 5.2 points to -24.6.
The report stated that “the number of vacancies has remained at a very low level over the past year,” referencing Ministry of Business, Innovation and Employment job advertisement data.
A net 3% of respondents said their earnings had increased over the past year, while a net 19% anticipated higher earnings in the year ahead. The report described these levels as historically low. Declining wage growth was attributed to “a growing degree of slack in the labour market,” with inflation now within the Reserve Bank’s target range.
Farm incomes were noted as a possible exception, though the report said regional results offered mixed signals on this point.
Job security sentiment improved modestly. A net 3% of households expected their jobs to become less secure over the coming year, compared with a net 7% in the previous quarter. The change was largely seen among respondents under 30. The report also highlighted “a rise in the duration of unemployment” as a factor influencing confidence.
Employment confidence varied across regions with no clear national pattern. Southland recorded the highest index at 101.8, up 11.4 points from March, becoming the only region above the neutral level. Northland followed with a 10.2-point rise. Conversely, Waikato recorded a sharp decline of 20.5 points, while Bay of Plenty and Taranaki also fell.
Among main centres, Auckland improved by 7.9 points, while Wellington and Christchurch recorded small declines. Wellington remained the least confident region, with the report noting “the biggest fall in the number of jobs over the last year.”
