It’s clear that there are unique opportunities and challenges facing our New Zealand job market, but that the question of ‘is the tide turning?’ is still up for debate.
We asked our Younity MD Richard Vaughan about his thoughts on the current evolving IT job market, and how both employers and job seekers can navigate and find opportunities in these choppy waters.
Richard explores the shifting dynamics of the IT job market in New Zealand, the impact of government cutbacks, the ongoing trend of overseas experience (OE), and tips for those looking to make their next career move.
Check out the full video below or continue reading for a breakdown of this interview.
Offshore Temptation: Assessing Opportunities Before You Leap
“For many IT professionals, especially those feeling restless in their current roles, the idea of looking offshore can be enticing. But before jumping ship, it’s crucial to clarify your career goals and assess where you are most likely to achieve them.
The reality is that the global job market isn’t vastly different from what we’re experiencing in New Zealand. Many cities in the developed world face similar challenges, particularly in the wake of the pandemic and its economic aftermath.
That said, understanding the unique conditions of your chosen location is key. While opportunities abroad might offer a fresh start, it’s important to weigh up whether you could achieve the same outcomes right here at home,” he says.
Auckland Leading the Way: Signs of Market Recovery
“When New Zealand first entered this period of economic uncertainty, there was an expectation that Auckland would lead the country out of the recession. This belief still holds weight, but the signs of recovery, while present, are more subtle than initially hoped.”
Richard refrains from calling these “green shoots,” but acknowledges a clear change.
“In Auckland, organisations are beginning to return to the market, and we’re seeing roles emerge that suggest the start of new projects and programmes. There is a growing demand for contract-based project managers and business analysts, a promising indicator that the market is on the rebound.
However, caution remains, as this recovery is gradual, and the full impact won’t be felt immediately.”
Wellington’s Struggle: Government Cutbacks and Knock-On Effects
“While Auckland is seeing some positive momentum, Wellington has been more significantly affected by government spending cuts. The capital’s reliance on public sector jobs means that reductions in government expenditure have hit the city’s job market hard.
These cutbacks have also had a knock-on effect on other sectors, including hospitality and retail, with many support services—cafes, restaurants, shops, and bars—struggling to stay afloat.
Despite the challenges, there is still an appetite among clients in Wellington to return to recruitment agencies. Businesses are cautiously re-engaging, and while uncertainty within the government sector remains, this willingness to reconnect with the job market suggests that recovery could be on the horizon.”
The OE Trend: A New Age of Overseas Experience
“One of the long-standing trends in New Zealand is the ‘OE’ (overseas experience), where professionals, often young, head offshore to gain international experience. This rite of passage is a familiar part of Kiwi culture.
However, a notable change in the current environment is the age and experience level of those leaving. Instead of just young professionals under 25, we’re seeing more experienced, established individuals with families seeking opportunities abroad.
This shift is concerning because these are often highly skilled professionals who add immense value to New Zealand’s economy. The key, however, is not to prevent people from going overseas, but to ensure they return.
When these individuals bring their global experience back to New Zealand, they enrich the local market, adding value wherever they work. The challenge is finding ways to incentivise their return.”
Richard suggests that a combination of factors—such as tax incentives, exciting work opportunities, and the ability to work with globally impactful organisations—could be key to bringing these skilled professionals back home.
A Window of Opportunity: Now is the Time to Hire
“For employers, the current job market presents a unique opportunity.
There is a higher-than-usual number of people looking for work, which means it’s an ideal time to seek out new talent. However, this influx of applicants can also be overwhelming, with some organisations receiving hundreds of applications for certain roles.
If you have the time and resources to thoroughly process these applications, now is the perfect opportunity to find top-tier talent. However, for many employers, navigating this large volume of candidates can be challenging. This is where recruitment agencies, like Younity, can play a vital role in helping businesses filter through applications and fill hard-to-find roles with the right candidates.”
Preparing for Your Next Move: Advice for Job Seekers
For job seekers, now is the time to get yourself ‘job-ready.’ “The market is competitive, and you need to be prepared if you want to stand out.”
Richard stresses the importance of being strategic in your job search. “Rather than sending out a scatter-gun of applications, take the time to research organisations thoroughly and understand who is hiring and what roles they are offering.”
Here are some of his key tips for job seekers in the current market:
- Update your CV: Ensure it reflects your most recent experience and is tailored to the roles you’re applying for.
- Enhance your online presence: Make sure your social media profiles, particularly LinkedIn, are up to date. This is often the first place that recruiters will look.
- Craft a strong cover letter: Tailor your cover letters to each job application. Avoid generic applications; instead, be specific about why you’re interested in the role and what value you bring.
- Be selective with recruiters: Connect with a few key recruiters who specialise in your industry. Building strong relationships with them will yield better results than a scatter-gun approach.
Check out our Job resources section for more tips, downloadable cover letter templates, Tech CV templates and more.
“By being thoughtful and strategic in your job search, you’ll stand out in a crowded market and increase your chances of landing the right role,” he says.
Looking Ahead: 2025 and Beyond
“Looking towards the future, uncertainty still lingers. At the start of the year, there was optimism that the market would bounce back by mid-2024. However, as we now approach the end of the year, the conversation has shifted to recovery in 2025.
Change is inevitable, but predicting its pace remains difficult.
What’s certain is that 2025 will present new opportunities, and those who are prepared will be in the best position to thrive. For both employers and job seekers, now is the time to take action—whether it’s investing in new talent or preparing for your next career move.”
In conclusion, Richard says “While the current climate is challenging for many, especially in technology and government sectors, there are clear signs of recovery on the horizon. For those ready to adapt, the coming year offers the chance to not only survive but thrive.”