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Elevate Magazine
September 9, 2025

NZ employment down, earnings maintain upward trend

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Photo Source: Unsplash.com

Employment levels in New Zealand eased in the June quarter, with total filled jobs edging lower. Inland Revenue’s PAYE-based datasets highlight a mixed picture: sectoral weakness on the one hand, sustained income growth on the other.

Wage gains remained concentrated in high-value industries. The figures suggest employment demand is softening while remuneration pressure continues.

Jobs Edge Lower Across Key Industries

Seasonally adjusted filled jobs fell 0.5% (10,560 jobs) compared with March 2025, bringing the total to 2.26 million. The decline was uneven across industries, with construction, hospitality, and administrative roles hardest hit.

Construction shed 2,315 jobs (down 1.3%), while accommodation and food services fell by 1,869 jobs (down 1.2%). Administrative and support services dropped 1,337 jobs (down 1.4%), and professional, scientific, and technical services eased by 1,225 jobs (down 0.7%).

Only one major sector bucked the trend: health care and social assistance, which added 1,885 jobs (up 0.7%).

Regional Employment Shifts Highlight Pressure Points

Auckland recorded the largest fall, down 0.6% (4,828 jobs), followed by Wellington with a 0.5% (1,342 jobs) drop. Hawke’s Bay saw the sharpest proportional fall, down 1.1% (837 jobs). Waikato and Bay of Plenty also slipped, losing 709 jobs and 683 jobs respectively.

Gender Trends in Job Losses

Job losses were greater for men than women over the year to June 2025. Male employment dropped 2.1% (24,608 jobs), while women saw a 1.3% decline (14,895 jobs).

Gross Earnings Maintain Upward Trajectory

Gross earnings for the year to June 2025 were up 1.5% ($2.6 billion) compared with the previous year despite the fall in job numbers.

The strongest gains came from public-facing and high-value industries. Public administration and safety earnings rose 3.6% ($567 million), education and training grew 4.0% ($554 million), and financial and insurance services lifted 5.0% ($444 million).

Statistics officials noted that gross earnings exclude redundancy, retirement payments, and other employee benefits. Payroll cycles—such as months with three fortnightly pay periods—can also cause quarterly volatility.

Market-Driven Adjustments in Labour Demand

The June figures point to an economy where firms are tightening employment in some sectors but maintaining higher pay in others.

While construction and hospitality weakened, resilience in public administration, education, and finance highlights continued demand for skilled labour and essential services.