New Zealand Employers Face A Brave New World With Optimism, Says Beyond Recruitment Report

AUCKLAND, NEW ZEALAND. March 26th, 2025 – The 2025/26 Beyond Recruitment Economic & Labour Report reveals cautious optimism and resilience among New Zealand employers, despite ongoing economic uncertainty and an accelerating evolution of jobs across multiple sectors.

Beyond Recruitment’s annual Economic & Labour Report provides insights into employer sentiment about the economy, hiring and the state of New Zealand's workforce.

The latest report highlights a stabilisation in employer confidence since the post-pandemic recovery, with fewer organisations (58%) describing the past year as challenging, down from 71% in 2023. Small to medium enterprises (SMEs) and large organisations reported the highest levels of confidence, contrasting with slightly lower optimism among very large organisations (1,001+ employees).

The economic slowdown emerged as the leading concern (31%) for employers, alongside rising operational costs and regulatory changes (both at 25%). Balancing cost management and growth is a central challenge, with 37% of organisations aiming to keep headcount stable, while 28% are planning headcount expansion. SMEs show the strongest appetite for workforce growth.

Usage of artificial intelligence has surged, with 83% of organisations either exploring or implementing AI tools, up significantly from previous years. Despite initial fears, employers view AI as predominantly complementary to human roles, with 43% upskilling their employees to meet the demands of an AI enhanced workplace.

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CE of Beyond Recruitment, Liza Viz, said: “While organisations are prudent in their hiring strategies, their resilience is clear. Employers are strategically positioning themselves to capitalise on anticipated market improvements, particularly through workforce development and increased adoption of technology like artificial intelligence (AI).

“Now is the time for employers to invest in their people and focus on future-proofing their workforce. The competition for talent will heighten once again, making skills development and building future talent pools a key priority for Aotearoa organisations.”

Hybrid work models are now standard, adopted by 77% of organisations, with flexible work hours and remote options firmly established as key employee benefits. Office spaces continue to evolve, reflecting new norms rather than temporary adjustments.

Other key insights from the report include:

• Pay rises are levelling at around 3%, with 38% of organisations planning this range of increase.
• Employer satisfaction with local talent is growing, with reliance on international recruitment easing.
• Organisations have increased their focus on diversity, equity, and inclusion within executive teams, which is considerably influencing executive search and recruitment strategies.

The Beyond Recruitment Economic & Labour Report 2025/26 gathered responses from over 500 employment leaders nationwide, representing various sectors including government, healthcare, manufacturing, technology, and professional services.

About Beyond Recruitment:
Beyond Recruitment is one of New Zealand’s largest 100% Kiwi owned recruitment agencies. Established in 2003, Beyond Recruitment’s specialist recruiters support sectors including technology, finance, HR, customer experience, marketing, engineering, and construction nationwide from offices in Auckland, Wellington, Tauranga, and Christchurch.

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