Less job hopping happening in New Zealand, according to report
The number of job ads in New Zealand rebounded 3.7% in the September 2023 quarter following three consecutive quarterly declines, according to data from the Recruitment, Consulting and Staffing Association (RCSA).
The Jobs Report from the RCSA revealed that the hike in job ads was felt across all regions, including Wellington (7.8%), Auckland (5%), and Canterbury (1.6%), after falling substantially the previous quarter.
RCSA CEO Charles Cameron said this indicates that the market is starting to normalise and business confidence going back up.
"Our members are telling us they feel like the market is beginning to balance out as it re-adjusts to a 'new normal' post COVID and amid other challenges," Cameron said in a statement.
The increase follows a massive 10.8% quarterly decline in job ads in the three months to June 2023, which Cameron attributed to the country's turbulent year.
"2023 has seen natural disasters, economic volatility, inflation an increased cost of living, the resignation of a prime minister and now, a change in government. It's little wonder the job market has been impacted," the CEO said.
Less job hopping
Job postings are also still lower than the 21.8% than in September 2022, and much lower than the post-COVID peak recorded in the last quarter of 2021, according to the report.
"Skills shortages still remain a huge issue in New Zealand and members are telling us that some employers have given up on advertising for staff which could contribute to the decline in postings over the past year," Cameron said.
But with lower job postings and salary offers around, the report also uncovered that there is less instances of job hopping in New Zealand.
"There is also less 'job hopping' happening because businesses have stopped offering the huge pay rates we saw over COVID when the skills shortage was at its worst," Cameron said. "With people staying put, there is less need to advertise for staff."
This development comes as more employers focus on building a permanent workforce over a flexible one, according to the report, as its Permanent Job Index saw an increase of 5.7%, while the Flexible Jobs Index logged a 6.3% decline.
Cameron said this was "unsurprising" given the ongoing skills shortage.
"It's also a good thing for job seekers who want more security as the cost-of-living rises," he said. "High paid flexible contracts are beginning to expire, and employment security is becoming more important."
