Labour market shows signs of improvement

• SEEK November report shows 1 pct rise job ads on October, 9 pct on year ago
• Applications per job fall 1 pct, first fall since January 2022 - slight easing of tough conditions
• Wages rise 0.8 pct in Nov. quarter, best gain in 18 months
• Reports point to slow improvement in labour market.

The labour market is showing signs of improvement going into 2026, with the first fall in job applications and improved wage increases.

The latest SEEK NZ employment and salaries reports show job ads rose 1 percent in November on the month before, the fifth consecutive monthly gain in advertisements and 9 percent more than a year ago.

SEEK country manager Rob Clark said the gains were not spectacular, but they were indicators of a better labour market next year.

"While the market remains challenging for many job seekers, the consistency of this growth suggests we're now in a genuine recovery phase rather than simply stabilising."

Conversely the number of applicants per job fell 1 percent, the first fall since January 2022, in nearly four years, suggesting an easing in demand and less competition for positions.

Wage growth quickens

Wages rose just under 1 percent in the three months ended November, the fastest quarterly growth in 18 months.

"A relatively broad pick up in advertised salaries across the country points to a more positive outlook for the labour market as we head into 2026," Clark said.

"Annual average advertised salary growth has begun to accelerate, with a notable increase in the most recent quarter."

The annual wage growth was 2.5 percent, with the strongest rate in the South Island.

The biggest annual rise of 9.7 percent was for Real Estate and Property positions, which Clark said might reflect firms hiring in anticipation of a pick up in the housing market.

Other sectors in demand were healthcare, legal staff, mining and resources, and media -- all showing 4 percent or more rises in salaries.

Stats NZ data showed wages grew 2.1 percent in the year ended September.

Most jobs and best wages -- go south

The SEEK surveys mirrored other economic indicators that showed the South Island leading activity and recovery.

The strongest annual job advert growth rates were in the south - Southland up 27 percent, Otago up 17 percent, and Canterbury up 16 percent, with strong growth in construction, trades, manufacturing, and transport.

Wellington and Waikato had double figure growth but Auckland continued to languish with no monthly growth and 1 percent annual growth.

Canterbury outpaced the country in annual salary growth at 3.2 percent, with the North Island outside of Auckland and Wellington at 3 percent.

"For candidates, the message is one of cautious optimism - the market is clearly improving, but that improvement is uneven across regions and sectors," Clark said.

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