‘Fierce competition’ for jobs as unemployment rises

Competition for jobs remains fierce. Photo / 123RF

Job ads rose for the first time since January but competition remains fierce amid rising unemployment numbers, new data shows.

Applications per job ad rose 7% in June (recorded with a one-month lag), according to Seek NZ’s Employment Report for July.

This was the largest increase since the beginning of the year.

“There’s fierce competition among candidates, which shows no sign of abating,” Seek NZ country manager Rob Clark said

“As unemployment, and the underutilisation rate, rises, it demonstrates that more people are available for and looking for work.”

Recent labour market figures from Stats NZ show the unemployment rate rose to 4.6% in the June quarter, up from 4.4%.

Competition for jobs was strong in Hawkes Bay (+15%), Canterbury (+10%) and Auckland (+7%).

Meanwhile, job ads rose 3% in July, just the second positive month this year.

“While it is pleasing to see an increase in job ad volumes, this comes after five months of consecutive declines, including an 8% fall in June,” Clark said.

Jobs ads are now down 29% year on year.

Most industries recorded an increase in job ads in July, with customer-facing industries leading the way. Retail and consumer products rose 24% in a month and hospitality and tourism was up 20%.

“As seasonal industries that are prone to fluctuation, the rise in volumes in retail and consumer products and hospitality and tourism may be a sign of businesses preparing for busier seasons,” Clark said.

The Bay of Plenty recorded the largest monthly rise in job ads, and its largest growth in over three years - up 16% from June.

The second-largest rise was recorded in Manawatū (10%).

Job ads rose in Wellington (4%) and Auckland (3%) - the highest monthly jumps for both regions in over two years.

“In the main metro regions, we saw an increase in job ads across consumer services (8%), professional services (4%) and in the public sector (9%),” Clark said.

“The Government and defence jobs rising 22% will most certainly have had an impact on Wellington’s high figures, while retail and consumer products and hospitality and tourism will have impacted Auckland.”

Southland (-12%), Tasman (-4%) and Gisborne (-1%) were the only regions where jobs ads declined month on month.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.