A recruiter reports “extreme fluctuations” in the Bay of Plenty job market last year as new data shows the number of roles advertised dropped by 22%.

Recruiters in the region say young job seekers have had it especially hard as businesses hire with more caution in a tight economic environment.

According to the latest Seek NZ Employment Report, jobs advertised on the site decreased in Bay of Plenty by 22% in the year to December - the same as the national average.

Seek NZ said this reflected a rise in unemployment, which hit 5.1% nationally in December - a four-year high.

“Demand for workers has decreased year-on-year in almost all industries and all regions.”

Metro area listings declined by 23%.

Regional job advertisements have experienced a year-on-year and quarter-on-quarter drop, with a 19% decline.

Recruitment agencies notice declines with ‘quieter months’

Tony Moore, area manager for Rotorua at recruitment agency One Staff, told NZME it was clear recruitment activity had slowed.

“The job market has become more competitive, with a noticeable decrease in the volume of entry-level and casual roles.”

Moore said businesses were being more cautious with hiring because of inflationary pressures and fluctuating consumer demand.

He said the 22% decline reported by Seek aligned with a ”regional shift toward more cautious hiring practices".

“Our local recruitment in Rotorua has become more focused on filling highly skilled and niche roles, particularly in industries such as forestry, tourism, traffic management, and geothermal energy.”

Tony Moore, One Staff Rotorua area manager, pictured in 2018. Photo / Stephen Parker

He said younger workers, aged 18-24, and those over-55 seemed to be seeking employment the most, while Māori communities and younger job seekers were most affected by unemployment in Rotorua.

Ryan + Alexander, a recruitment agency in Tauranga, said the past 12 months had been a “real mixed bag”.

Founder and director Kiri Burney said the past calendar year included some of their quietest months, yet one of their busiest-ever quarters.

“There seemed little rhyme nor reason for such extreme fluctuations in the market.

“There continue to be job losses in some sectors around Tauranga and the wider Bay of Plenty particularly within the innovation and manufacturing sectors.”

She said this was hard to bear for the individuals involved and their families and communities that surrounded them.

“There is still a level of uncertainty that remains.”

Ryan + Alexander directors Kiri Burney and Bernadette Ryan. Photo / Supplied

Lisa Armstrong, general manager of operations and finance at Drake New Zealand recruitment agency in Tauranga, said the employment market in the city remained highly competitive.

“Businesses are being selective in their hiring decisions, prioritising experience and specific skill sets. This has led to increased competition.

“We have observed a decrease in overall hiring volumes compared to previous years, reflecting broader market trends.”

Armstrong said the agency had seen a decline in job availability in the Bay of Plenty region, which had come in line with national trends.

In 2024, businesses were exercising caution in hiring because of economic uncertainty, cost pressures and fluctuating demand, she said.

“The impact of unemployment is being felt most acutely by job seekers with limited work experience or those in industries that have seen contractions.

“For young workers and migrant job seekers, securing that first opportunity can be difficult in a market where experience is heavily weighted.”

Economic outlook

Nigel Tutt, chief executive at Priority One, said the rate of economic growth in the Western Bay of Plenty had been marginally positive over the past year, whereas New Zealand had been negative.

Priority One is an economic development organisation that deals with the Western Bay of Plenty region.

Priority One chief executive Nigel Tutt. Photo / John Borren

“We think unemployment in this area will go up above 5%, and that’s a pretty big change from 3.1% a couple of years ago.

“It’s a little worse than we would experience over time. In the latter half of this year, we would expect unemployment to start dropping as economic conditions improve.”

He said younger females and Māori were the demographic groups most affected when “times are tough, as a general rule”.

Tutt said it was important to look on the positive side and periods of high employment were “a good time” for people who may be struggling for work – particularly those who were younger and joining the job market – to invest in themselves.

“Make sure they’ve got really good skills and training under their belt, so they can earn higher wages in the long term.”

More from the report

The Seek NZ report showed applications per job ad faced a decline of 2% month-on-month, mainly due to a drop in hiring in major cities.

Nationally, most industries recorded a decline in job ads in December.

Healthcare and medical roles recorded a 6% decline and are now 15% lower quarter-on-quarter, while retail and consumer products roles fell 13% quarter-on-quarter.

Rob Clark, Seek NZ’s country manager, said in the report the overall trend in 2024 was one of decline.

“Hiring and applications do tend to pick up in the early months of a new year, as hires and candidates start thinking about the future - so January and February will be ones to watch.”