Over the past few months, we have started to see a shift in the New Zealand IT job market. After a long period of tight budgets and hesitant hiring, organisations are beginning to move again. Job ads are rising, conversations are changing, and new work is starting to come through.
From our vantage point, working daily with hiring managers and candidates across Auckland, Wellington, and Canterbury, the mood is noticeably different from this time last year. There is more confidence. There is more intent. And there is, finally, some momentum.
As Richard Vaughan, Managing Director of Younity, puts it, “The outlook is far more positive than we have seen in the last 24 months. It’s not all rainbows and unicorns – we absolutely acknowledge that people are still struggling out there, but we can see that there is a definite uptick in jobs coming out to the market.”
SEEK’s employment reports for 2026 show a similar pattern. In the January 2026 SEEK report ICT job ads were up 16.2 percent year on year, and in February 2026 it was up 7.4 percent year-on-year. That’s a clear pattern of growth, but it does not tell the whole story.
Improved activity is encouraging, but it doesn’t automatically make the market easier. Hiring is returning carefully and deliberately. There are more roles, but there are also more applicants, higher expectations, and far more targeted decision making.
In other words, the market is moving, but so is the competition. Understanding how and where that movement is happening is important to stay relevant in your career journey.
The market, region by region
In Auckland, the shift in sentiment is clear. Clients are more confident and increasingly willing to kick off significant pieces of work. This is not a return to rapid expansion, but it does mark a shift away from pure cost containment after the last few years of organisations being forced to do more with less.
- Business analysts are in strong demand as new programmes are scoped up.
- Testing roles, which were quietly removed across many organisations over the past 18 months, are starting to reappear.
- Data roles continue to grow, driven by organisations recognising they need strong data foundations before they can do anything meaningful with AI.
- Product roles are also beginning to emerge and are expected to build steadily through the year.
For now, Auckland remains largely a contractor market for new initiatives. Permanent roles do exist, but they are more commonly seen at senior and management level.
One important insight for candidates is that AI experience does not yet require a long track record. We are seeing people secure interviews because they can demonstrate curiosity, hands on learning, and personal initiative in how they have explored AI tools. That window is open right now, but it will narrow as the market matures.
Wellington is showing clear signs of recovery after a turbulent period of public sector restructuring. Government agencies are rebuilding capability, and private sector confidence is growing, making Wellington one of the more active markets heading into the second half of 2026.
- Demand remains steady for developers and testers.
- Data engineering continues to grow, with AI increasingly tied into this work, spanning everything from strategic leadership to day-to-day implementation.
- Within business transformation, business analysts are leading demand, followed by project managers and then change managers.
The private sector is leaning more towards permanent hiring, while public sector roles continue to favour contracting. One important caution for candidates is that while there is strong hiring intent across government, not all roles have formal headcount approval yet. Waiting for positions that have not reached the market yet can add unnecessary risk if you’re job hunting in a competitive environment.
Canterbury has started 2026 with genuine momentum after a more uneven 2025. Budgets remain tight, but organisations are hiring with clearer intent.
Permanent roles dominate the market. Where contracting does occur, it often begins with short initial terms of around three months.
- Demand is centred on business analysts, data roles within the Microsoft ecosystem, automation testers, and software developers.
- AI specialist roles are still limited in volume, but interest is growing. Many organisations are still in early exploration phases, making this a good time for candidates with practical AI experience to be clear about how they are already using it.
More roles do not mean less competition
After 2-3 years of a slow market, there is significant pent up candidate supply. People who stayed put, returned from overseas, or have been searching for extended periods are all active at the same time.
That pressure is reflected in candidate sentiment. According to the Younity 2025 IT Industry Survey, 76 percent of IT job seekers say finding a role is harder now than the last time they were on the market. While this has improved from 2024, it still points to a genuinely competitive environment.
For candidates, this means the way you approach your search matters just as much as the roles you apply for.
The people we see getting placed are not always the strongest on paper. They are clear about what they offer, visible in the market, and ready to move quickly when the right opportunity appears.
What AI is doing to hiring decisions
AI continues to be the biggest source of uncertainty for IT professionals. 66 percent of NZ IT professionals say they are concerned about how AI may impact their future job security. At the same time, 70 percent of NZ employers are already paying for generative AI subscriptions for their workforce.
In practice, we’re finding that organisations are not hiring people to evaluate AI, they are hiring people who can deliver with it and enhance productivity in their teams.
Candidates who stand out can speak specifically about how they have used AI tools and platforms to support better outcomes. Formal AI roles are still limited, but practical experience, even when self-directed or developed outside a traditional work setting, is currently opening doors. This is an opportunity worth taking seriously while it exists.
The election year factor
Both Auckland and Wellington typically experience a slower period between July and September in election years, particularly in the public sector, while Canterbury tends to be less affected.
For candidates, the key takeaway is that current activity is real and active. Delaying a job search in the hope of a stronger second half of the year carries more uncertainty than usual.
What is working for candidates right now
Candidates who are securing roles consistently have the following five behaviours in common.
- They understand where demand is genuinely strong in their region and align their CV and LinkedIn profiles accordingly.
Take note – across all regions, roles with momentum include:
- Business analysts
- Data engineers
- Software developers
- Testers
- Delivery leads
- Project managers
- Change managers are particularly active in Wellington.
2. They tailor their approach to regional dynamics.
Take note:
- Auckland favours contracting for project work.
- Wellington is mixed, with private sector roles more often permanent and public sector roles leaning contract.
- Canterbury is largely permanent, with limited but shorter-term contract options.
3. They have practical experience with AI tools and can talk clearly about what they have used, how they used it, and what it enabled.
4. They respond quickly when opportunities arise.
5. They are specific. Generic CVs struggle to stand out in long shortlists, while clear examples of delivered outcomes make a real difference.
The bottom line
In our Younity Industry survey 42 percent of NZ IT professionals said they expect the 2026 job market to be better than 2025. Both the data and our experience on the ground support that view.
It’s also worth noting that while it’s improving, this isn’t a passive market. The people having the most success tend to be those who have thought about where demand sits, can clearly explain what they bring, and are open about how they’re adapting as the market shifts.
Sources: Younity 2025 Tech Professional Temperature Survey (n=1,016); SEEK NZ Employment Report, January 2026
Younity is a specialist IT recruitment consultancy with teams across Auckland, Wellington, and Canterbury. If you want an honest, no pressure conversation about how your skills fit the current market, we are always happy to talk.
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