The fall in job advertisements has slowed, but those on offer are in specific sectors and competition is getting tougher.
Employment website Seek's latest report shows a 4 percent fall in adverts for the three months ended March, driven by public service job losses, although the March monthly decline was fractional.
The number of adverts was down 27 percent on a year ago.
Seek local head Rob Clark said the labour market was looking mixed.
"In March, public sector roles declined to the greatest degree, which we know is due to a reduction in spending by ministries and agencies."
More than 3100 public sector jobs are set to be cut by ministries, departments and agencies to meet government spending reductions.
More than 300 media jobs are also set to go at Newshub and TVNZ, with smaller job losses at private companies.
He said there were declines in education and training, healthcare and medical, and government sectors, although the biggest drop was in media, which fell 16 percent.
Clark said Seek has about 18,500 jobs listed, with double digit growth in human resources, recruitment, consulting and strategy, and legal sectors, but it would be tough for those losing jobs in the public sector to readily step into another.
"Increasingly it's a skill-based market, in addition to the traditional experience, that's really what drives the jobs you get."
"We're trying to help people match the skills to the roles... and we see lots of success in that regard, but it's hard to say they'll pick up a role immediately but the hope is there are roles out there that can utilise the skills that they've got."
Clark said the immigration surge of the past year has increased competition for jobs and also eased the pressure on wages.