Job vacancies in Wellington fall, public sector cuts blamed

Wellington job postings have plummeted and applications have risen, with one recruitment firm attributing a huge rise in applications to public sector job cuts.

Robert Walters has reported a 112% rise in job applications following public sector cuts in the city.

Chief executive Shay Peters said the labor market was being affected on two fronts; Firstly, the global macroeconomic situation was causing several countries to suffer a recession, but “along with that, we obviously have a new government with a very different mandate from the previous one.”

The rationalization of the public sector contributed significantly to the state of the labor market, he said, and the private sector seemed “a little more buoyant than the public sector at the moment.”

According to the latest data from job market Seek, job advertisements fell 4% nationally in April and were now 30% lower than this time last year.

Wellington had the biggest drop, a 44% decline from 2023 figures.

Ad requests increased 5% nationally and were now 96% higher than this time last year.

It created a difficult environment for job hunting and Peters recommended staying put if possible, risking “last in, first out” for anyone changing employers.

“The job market in Wellington is definitely depressed at the moment,” he said.

“We are seeing across the board a significant number of redundancies in the system, and I believe there will be more to come as organizations finish their consultation periods.”

He said they were seeing many people starting to look for work abroad.

Seek data shows that hospitality and tourism job postings suffered the biggest drop, down 21% from last year.

However, job postings in insurance and retirement increased; industry had the biggest increase at 17%, followed by advertising, arts and media, up 15% from last year.

In terms of job applications, industries such as manufacturing, transportation and logistics, retail and consumer products, and community services and development, job applications had more than doubled during last year.