Job listings also up
New Zealanders’ paychecks soared to new record highs at the start of 2023, with the job market seeing a surprising number of job listings, latest Trade Me jobs data showed.
New Zealand delivered another record average salary in 2023’s first quarter, coming in at $68,316, which smashed 2022’s high of $67,562.
“With a recession on the horizon we would expect job listings to fall and salaries to stagnate as employers face an uncertain outlook,” said Matt Tolich (pictured above), Trade Me Jobs sales director.
“However, the first quarter bucked this trend with more money going into bank accounts on payday. And when comparing job listings to the same period in 2019, vacancies were down only 7%, a much smaller drop than we would’ve expected. Overall, the jobs market is in pretty good shape considering the macroeconomic conditions at play.”
Tolich said there’s strong wage growth in the regions.
South Island posted the largest average salary rises in Q1, with West Coast (up 11%), Southland and Otago (up 8% respectively), and Nelson/Tasman (up 7%) all reaching new record average salaries.
“Wellington still holds the top spot for the highest-paying region and the only one in the $70,000 bracket at $71,825,” Tolich said. “This is followed, surprisingly, by West Coast at $69,700. While the West Coast is one of our smallest markets, in Q1 we saw a number of highly paid roles hit the market in the region, which saw it overtake Auckland (at $69,546) by just $150.
“These rising salaries are in part a legacy of 2022’s skill shortage, where employers had to lift their game to attract quality workers, along with a reaction to the cost-of-living crisis, and the increase in the minimum wage.”
The sector that commanded the highest salaries continued to be IT, although the average dropped to $110,000 across the sector from last year’s height of $125,000.
“Demand is still high for skilled IT professionals, though it appears there are more people in Aotearoa looking for work with those skills,” Tolich said. “So, a typical case of supply and demand.”
Data also showed a dramatic increase in the number of people applying for vacant roles, with average applications per listing up 83% compared to the prior year.
“This means a greater spread of applicants for potential employers to choose from, ensuring they get the best talent for the role,” Tolich said.
Construction and roading posted an 166% uplift in applications, while engineering’s lifted 135%. IT had an uptick of 127% in average applications per listing while trades and services increased 109% year-on-year.
In the hospitality and tourism sector, applications surged 83% while jobs increased 4% as it gears back up after the borders have reopened.
“The sector is buoyed by a flush of demand for global travel and also the growing number of people on working visas entering the country to fill positions,” Tolich said. “There’s finally some relief for the businesses who have been crying out for staff. The tourism sector is set to grow even more this year, so we should continue to see a healthy number of opportunities in these areas.”
Jobs listings with “work from home” in the description, meanwhile, increased by 269% since Q1 in 2019, before the pandemic transformed the world of work. The average salary of those listings also increased, from $73,000 to $85,000.
“Working from home remains a key priority for job hunters and as a result we’ve seen more employers get on board and embrace flexible working,” Tolich said.
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