New Zealand 2025 employment market insights

Key takeaways from people2people's 2024 Employment and Salary Report

New Zealand 2025 employment market insights

Key takeaways from people2people's 2024 Employment and Salary Report

New Zealand labour market update:

Key trends and insights for 2024

The Auckland labour market is undergoing a significant shift, driven by a net gain of 130,000 migrants nationwide at the end of 2023. Despite this influx, a net loss of 44,500 New Zealand citizens reflects an ongoing trend of Kiwis leaving the country. This dynamic has increased competition among job seekers, reducing candidates' bargaining power for improved work conditions.

While unemployment rates have risen slightly to 4.0% in the December 2023 quarter, they remain relatively low. Employers are finding it easier to source quality talent compared to 2023, but it continues to be a challenge. With economic measures to curb inflation expected to push unemployment higher, 2024 promises a tighter job market. As organisations face ongoing talent shortages and cost pressures, Auckland employers should prepare for another year of uncertainty and adapt their hiring strategies accordingly.

In 2023, Wellington experienced a two-paced recruitment environment. The first half of the year saw strong hiring activity, particularly for contract and temp roles. However, recruitment in these areas declined sharply in the second half of the year, while permanent positions remained steady until election time. Following the election and the introduction of a new government, recruitment in the government sector has stalled significantly. With increased fiscal pressure, 2024 is expected to be challenging for those in this sector, as workforce reductions and limited hiring opportunities become more prevalent. Employers and job seekers alike will need to navigate a slower and more competitive market in the year ahead.

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Employment trends shaping New Zealand’s labour market in 2024

Key factors driving talent retention in 2024


Talent retention is a crucial focus in today’s competitive workforce. What drives employee loyalty, from career opportunities to work-life balance? How can businesses align retention strategies with employee expectations and bridge gaps in understanding between managers and staff to foster meaningful, engaging, and productive workplace environments in 2024?

Key workplace flexibility trends for 2024


Workplace flexibility remains a top priority for employees in 2024. Employers face challenges in competing with flexible roles, meeting work-from-home expectations, and offering tailored arrangements. How can employers attract and retain talent by understanding employee preferences, balancing office and remote work, and providing flexibility from day one?

Why are employees leaving their jobs?


Employee retention and resignation remain significant challenges in today’s competitive workforce. Why are employees leaving their jobs, and what strategies can employers use to retain top talent? How does leadership influence employee engagement, and what role do workforce trends play in shaping supportive workplaces and addressing evolving career priorities in 2024?

Key factors driving talent retention in 2024

Talent retention remains a top priority for organizations in today’s competitive job market. With evolving workforce dynamics, understanding what matters most to employees and job seekers is critical for employers to develop strategies that foster loyalty and engagement. Exploring key retention levers, including career opportunities, management support, and work-life balance, reveals how companies can better align their efforts with employee priorities to create meaningful workplace experiences.

In 2024, career opportunities emerged as the most significant factor driving retention, with a close focus on training and development, management support, and trust. While hiring managers and employees largely agree on the importance of financial benefits, the biggest disconnect lies in their views on training and development. Employees prioritize career growth and learning opportunities, while managers may underestimate their value. This gap highlights the need for organizations to bridge the divide and align retention strategies with employee expectations.

Moreover, factors such as work-life balance, flexible working, and the sense of purpose in work continue to play a vital role in retention. Company culture, job security, and mental health support remain consistent priorities, reflecting the increasing emphasis on holistic employee well-being. While environmental contributions and community engagement rank lower on the list, they still hold value for a significant portion of employees. As retention strategies evolve, understanding these trends can help organizations stay ahead in attracting and retaining top talent.

Unlock full insights

Key factors driving talent retention in 2024

Talent retention remains a top priority for organizations in today’s competitive job market. With evolving workforce dynamics, understanding what matters most to employees and job seekers is critical for employers to develop strategies that foster loyalty and engagement. Exploring key retention levers, including career opportunities, management support, and work-life balance, reveals how companies can better align their efforts with employee priorities to create meaningful workplace experiences.

In 2024, career opportunities emerged as the most significant factor driving retention, with a close focus on training and development, management support, and trust. While hiring managers and employees largely agree on the importance of financial benefits, the biggest disconnect lies in their views on training and development. Employees prioritize career growth and learning opportunities, while managers may underestimate their value. This gap highlights the need for organizations to bridge the divide and align retention strategies with employee expectations.

Moreover, factors such as work-life balance, flexible working, and the sense of purpose in work continue to play a vital role in retention. Company culture, job security, and mental health support remain consistent priorities, reflecting the increasing emphasis on holistic employee well-being. While environmental contributions and community engagement rank lower on the list, they still hold value for a significant portion of employees. As retention strategies evolve, understanding these trends can help organizations stay ahead in attracting and retaining top talent.

Unlock full insights

Key workplace flexibility trends for 2024

Flexibility in the workplace has become a critical factor in attracting and retaining top talent. As employers navigate the challenges of balancing operational needs with employee expectations, understanding the dynamics of flexibility preferences is essential. Key considerations include competing against roles offering greater flexibility, how work-from-home arrangements influence job decisions, and the timing of access to flexibility when starting a new job.

To remain competitive, many employers emphasize flexibility, career growth opportunities, and strong company reputations to attract candidates. However, job seekers’ expectations around returning to the office vary widely, with many requiring significant incentives, such as pay rises, to give up flexible arrangements. Additionally, timing plays a critical role, as over half of job seekers expect work flexibility to be available from their first day in a new role.

Work-from-home preferences reveal that most employees desire a hybrid model, balancing office presence with remote work. While some teams adopt shared anchor days in the office, others implement tailored individual flexibility arrangements. Employers who fail to adapt risk resignations, as flexibility continues to be a driving force in job satisfaction and decision-making for modern professionals.

Unlock full insights

Key workplace flexibility trends for 2024

Flexibility in the workplace has become a critical factor in attracting and retaining top talent. As employers navigate the challenges of balancing operational needs with employee expectations, understanding the dynamics of flexibility preferences is essential. Key considerations include competing against roles offering greater flexibility, how work-from-home arrangements influence job decisions, and the timing of access to flexibility when starting a new job.

To remain competitive, many employers emphasize flexibility, career growth opportunities, and strong company reputations to attract candidates. However, job seekers’ expectations around returning to the office vary widely, with many requiring significant incentives, such as pay rises, to give up flexible arrangements. Additionally, timing plays a critical role, as over half of job seekers expect work flexibility to be available from their first day in a new role.

Work-from-home preferences reveal that most employees desire a hybrid model, balancing office presence with remote work. While some teams adopt shared anchor days in the office, others implement tailored individual flexibility arrangements. Employers who fail to adapt risk resignations, as flexibility continues to be a driving force in job satisfaction and decision-making for modern professionals.

Unlock full insights

Why employees are leaving their jobs in 2024

Employee retention and resignation are ongoing challenges in today’s dynamic workforce. Understanding why employees leave and how companies can improve retention strategies is crucial for fostering long-term engagement and productivity. In recent years, the factors driving employee resignations have evolved, highlighting the importance of addressing career development, workplace culture, and leadership. What are the root causes of employee resignations, the strategies businesses are employing to retain talent, and the broader implications for workforce management in 2024?

One of the most significant reasons employees quit is the lack of career opportunities, which continues to be a leading factor in 2024. Employees also cite low pay, management issues, and unsupportive workplace cultures as additional barriers to staying. Other notable factors include insufficient flexibility, poor work-life balance, and the absence of adequate employee benefits. These challenges underscore the necessity for organizations to evaluate their internal structures and prioritize creating an environment that meets the evolving needs of their workforce.

To combat rising attrition rates, organizations are focusing on innovative retention strategies. In 2024, increased base pay and investments in training and development are among the most prominent approaches. Companies are also placing greater emphasis on retaining critical roles, offering more flexible work arrangements, and facilitating lateral promotions to encourage internal mobility. These strategies reflect a shift toward building a more inclusive and supportive workplace, which helps employees feel valued and motivated to stay.

Unlock full insights

Why employees are leaving their jobs in 2024

Employee retention and resignation are ongoing challenges in today’s dynamic workforce. Understanding why employees leave and how companies can improve retention strategies is crucial for fostering long-term engagement and productivity. In recent years, the factors driving employee resignations have evolved, highlighting the importance of addressing career development, workplace culture, and leadership. What are the root causes of employee resignations, the strategies businesses are employing to retain talent, and the broader implications for workforce management in 2024?

One of the most significant reasons employees quit is the lack of career opportunities, which continues to be a leading factor in 2024. Employees also cite low pay, management issues, and unsupportive workplace cultures as additional barriers to staying. Other notable factors include insufficient flexibility, poor work-life balance, and the absence of adequate employee benefits. These challenges underscore the necessity for organizations to evaluate their internal structures and prioritize creating an environment that meets the evolving needs of their workforce.

To combat rising attrition rates, organizations are focusing on innovative retention strategies. In 2024, increased base pay and investments in training and development are among the most prominent approaches. Companies are also placing greater emphasis on retaining critical roles, offering more flexible work arrangements, and facilitating lateral promotions to encourage internal mobility. These strategies reflect a shift toward building a more inclusive and supportive workplace, which helps employees feel valued and motivated to stay.

Unlock full insights

Employment trends shaping New Zealand’s labour market in 2024

Key factors driving talent retention in 2024


Talent retention is a crucial focus in today’s competitive workforce. What drives employee loyalty, from career opportunities to work-life balance? How can businesses align retention strategies with employee expectations and bridge gaps in understanding between managers and staff to foster meaningful, engaging, and productive workplace environments in 2024?

Key workplace flexibility trends for 2024


Workplace flexibility remains a top priority for employees in 2024. Employers face challenges in competing with flexible roles, meeting work-from-home expectations, and offering tailored arrangements. How can employers attract and retain talent by understanding employee preferences, balancing office and remote work, and providing flexibility from day one?

Why are employees leaving their jobs?


Employee retention and resignation remain significant challenges in today’s competitive workforce. Why are employees leaving their jobs, and what strategies can employers use to retain top talent? How does leadership influence employee engagement, and what role do workforce trends play in shaping supportive workplaces and addressing evolving career priorities in 2024?
Unlock full insights

2024 market insights across New Zealand

Key labour market trends shaping recruitment and salaries in 2024

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