Great Resignation no more: More Kiwi workers look for stability amid rising unemployment

Less Kiwi workers intend on changing their jobs in the next 12 months amid rising unemployment and job security fears.

Almost two-thirds of Kiwi workers say they are unlikely to leave their job in the next 12 months, with fears of finding new employment a major concern, according to a new survey.

“In 2022, employers were confronting the ‘Great Resignation’… today, with jobs becoming scarce, workers are wanting stability and are looking to stay in their existing jobs,” said Employers and Manufacturers Association (EMA) head of advocacy Alan McDonald.

The findings were part of the 2024 Workplace Wellbeing survey which was commissioned by the EMA and nib New Zealand and canvassed the views of 1229 New Zealand workers.

It represents a turn-around in attitude from when the same survey was conducted in 2022, when a quarter of workers said they intended to change jobs in the coming year.

But fast-forward two years into an economic downturn and rising unemployment and just 19% now say they are likely to leave their job in the next 12 months, compared to 61% who aren’t considering doing so.

It comes amid rising job security concerns, with more than half (55%) worrying about finding a new job, if needed or desired.

Those concerned about job security rose from 33% in 2022 to 44% in the latest survey.

New Zealand’s official unemployment figure came in at 4.6% for the June quarter - up from 3.3% in the same quarter of 2022, according to Stats NZ.

Survey respondents were also more likely to have concerns about financial security (67%) than they did two years ago (51%).

Rob Hennin, nib NZ’s chief executive, said findings around job anxiety paint a stark picture of the wellbeing of New Zealanders who are navigating difficult economic times.

“The fact that Kiwis are increasingly worried about the security of their jobs is likely feeding into their growing concerns around their financial security,” Hennin said.

“This presents a challenge for employers who must navigate these relationships as they also grapple with the pressures of an economic downturn.”

Workers who stated their wellbeing had been impacted by job insecurity suffered higher levels of mental and physical strain when measured against all employees, the survey found.

This included higher levels of stress (49% versus 38% for all employees); sleeping problems (43% versus 32%); anxiety (38% versus 28%); and feelings of worthlessness (30% versus 19%).

McDonald said it was important employers look at how they can build a great culture, invest in wellbeing and make their employees feel valued.

“Doing this can help build loyalty, reduce turnover and boost productivity,” he said.

“It is also important that employers are not complacent and focus on their retention strategy so they can retain their talent when the economic tide turns.”

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.