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New Zealand – Salaries suffer as job market cools

07 October 2015

Over the past year there has been a noticeable lift in the number of Aucklanders looking outside the region for a new job, according to Peter Osborne, head of job board Trade Me Jobs, reports The New Zealand Herald.

“13% of applications send by Auckland candidates were for roles located outside the Auckland region. That’s up an impressive 47% on the previous year, matching the increasing pressure on the cost of living in New Zealand’s biggest city,” he said.

Heated competition among jobseekers in a market, that "was cooling off", has meant employers have not had to stretch the budget as much to compete for candidates.

"As a result we expect that average salaries will show little, if any, growth over the coming quarter," Mr Osborne stated.

There has been an 81% increase in the number of Aucklanders applying for jobs in Waikato, which lies just to the south, compared with last year. Canterbury on the South Island reported a 45% increase in applications from the region. The Bay of Plenty, which lies to the east of Auckland, saw a 32% increase in job applicants. 

The latest Trade Me Jobs analysis, of more than 60,000 vacancies listed in the three months to September, also showed a more competitive job market full of potential employees.

Mr Osborne expects this will lead to little, if any growth, in the average salary: "With fewer jobs and more applicants, employers won't have to stretch the budget as much to compete for candidates."

The number of new roles nationwide has risen 1.2% when compared to the same period last year, whereas the average advertised salary fell 2.6%.

The Bay of Plenty has shown the greatest growth in the job market up 22.6%, followed by Auckland at 7.3%, however the West Coast saw a 22.6% drop, with the capital, Wellington, coming in second to last down 7.6%.

Mr Osborne explained that the employment market had been hinting at a slowdown for several months: "A number of economic indicators suggested the Kiwi job market was cooling off this year with employers not hiring as often, but new job listings remained strong on Trade Me Jobs in the face of a pessimistic outlook. Over the past three months, things have started to quieten down."