Business / Employment

Advertised salaries rising at fastest rate in six years amid strong hiring activity - report

05:34 am on 26 September 2023

Businesses are beginning to plan for a busy lead-in to summer with demand for workers rising for the first time in five months, says Seek country manager Rob Clark. Photo: 123rf

The number of job ads is on the rise for the first time since March, alongside an increase in salaries.

The latest Seek NZ Employment Report indicates job ad volumes rose 2.2 percent in August over July, with the number of applications per job continuing to rise for the sixth consecutive month, with a 2 percent increase.

The Seek Advertised Salary Index rose 5.1 percent in the three months ended August, over the year earlier quarter, with all parts of the country seeing wage offers increase. Canterbury led the regions with 6.5 percent, with Auckland slightly behind the rest at 4.7 percent.

"Applications per job ad continue to rise and continue to break Seek records," Seek country manager Rob Clark said.

"Typically, leading into a general election, we would expect to see a dip in hiring activity as businesses put plans on hold."

He said demand was broad-based.

"Businesses are beginning to plan for a busy lead-in to summer with demand for workers rising for the first time in five months."

"The cities were responsible most of this growth, particularly Auckland and Manawatū," he said adding that Southland recorded the greatest jump in job ads with a 9 percent increase.

He said there was double digit growth in ads for call centre and customer service roles, sales and education and training roles.

Hospitality and tourism ads rose 20 percent, followed by consulting and strategy with a 15 percent rise, education and training at 12 percent, and community services and development at 11 percent.

Construction was the largest industry to record a decline in job ads - dropping 7 percent.

He said salary growth was also on the rise, with engineering salary offers up 7.6 percent, while growth in information and communication technology lagged behind other industries with wage growth of 2.8 percent.

"Advertised salary growth in New Zealand remains strong, despite the slowing economy," Clark said, noting New Zealand's advertised salaries were rising faster than any point in the past six years, and outpacing salary growth in Australia.