New Zealand Labor Market Shows Signs of Recovery as Employment Figures Rise for Third Time in Late 2025

Statistics New Zealand released fresh data on January 8, 2026, revealing that the number of filled jobs across the nation increased in November 2025. This marks the third monthly uptick within a four-month window, suggesting a potential turning point for a labor market that had been struggling since the start of 2024. Specifically, the workforce expanded by 6,569 positions, representing a 0.3% rise on a seasonally adjusted basis compared to October 2025.

This recent momentum has pushed the total number of employed individuals to 2.35 million, the highest level recorded since March 2025. Despite this monthly progress, the broader annual picture remains somewhat subdued. When compared to November 2024, the total job count is down by 0.4%, which translates to a net loss of 9,113 positions over the twelve-month period.

Sector-specific data highlights a fragmented recovery across the economy. In November 2025, primary industries led the monthly growth with a 0.8% increase, adding 890 jobs, followed by the services sector, which added 4,124 positions (+0.2%), and manufacturing, which grew by 0.1% with 490 new jobs. Conversely, the construction industry has faced significant challenges, shedding 7,172 jobs over the past year—a 3.6% decline. Similarly, professional, scientific, and technical services saw a 2.2% annual reduction, losing 4,198 roles.

Geographically, the employment landscape varies significantly across the islands. Regions like Canterbury and Otago both enjoyed a 0.7% annual increase in employment. However, major urban hubs struggled, with Auckland seeing a 0.7% decrease and Wellington experiencing a more pronounced 1.5% drop. On a brighter note, public administration and safety grew by 2.1% annually, while healthcare and social assistance expanded by 1.8%.

These employment trends are unfolding against a backdrop of shifting monetary policy. By the end of 2025, the Reserve Bank of New Zealand indicated that lower interest rates were beginning to stimulate consumer spending and stabilize the workforce. This shift is reflected in the broader economy, with New Zealand's GDP growing by 1.3% year-on-year in the third quarter of 2025, breaking a five-quarter streak of stagnation or decline following the previous year's recession.

While the figures are encouraging, economists maintain a level of skepticism regarding the long-term outlook. The Monthly Employment Indicator (MEI) figures are preliminary and frequently subject to downward revisions, which could temper the optimism surrounding the November gains. Furthermore, structural issues persist; the country saw a 13-year high in net migration outflows by June 2025. Additionally, the labor force participation rate as of November 4, 2025, reflecting the third quarter of 2025, dipped to 70.3% from the 70.5% recorded in the preceding quarter, while unemployment for December 2025 is projected to hold steady at 5.3%.