ASB senior economist Mark Smith said expected relief from high interest rates was probably driving more recruitment in the services sector.
“We expect hiring to remain patchy over the first half of 2025 before concertedly strengthening thereafter. Further OCR cuts are still needed to avoid labour market scarring,” Smith said.
He said the gains were from low levels.
“January employment was 1.2% lower than a year ago and 1.3% below its March 2024 peaks.”
Smith said a previously reported increase for December was revised to a 0.1% monthly fall, with the level of employment 0.2% lower by year end.
Earlier today, Seek’s Employment Report showed hiring activity rose 4% in January after a difficult 2024.
The latest ANZ Business Outlook survey showed, overall, confidence was up, but companies’ confidence in their own futures took a hit.
Business confidence rose four points to +58 in February.
“The economy remains on the path to recovery as interest rates fall and our commodity export prices outperform expectations,” ANZ chief economist Sharon Zollner said.
“It seems clear from a wide range of indicators that the economy returned to positive growth in the last three months of last year.”
Year-on-year changes
Construction job numbers last month were down 6.6% compared to a year.
About 13,500 fewer jobs in that sector were filled.
But education and training job numbers were up 4% or 7857 roles.
Jobs in administrative and support services were down by 7% or 7073 jobs, Stats NZ added.
The health care and social assistance sector filled 6314 more jobs than in January 2024, up 2.3%.
The manufacturing sector was down 2.6% or 6292 jobs.
Actual gross earnings on an accrual basis for the January 2025 month were $15.6 billion, Stats NZ said.
That equated to about $6610 per person.
Total gross earnings were $15.4b for January 2024.
