Public sector cuts: Trade Me data shows impact being felt in Wellington with drop in listings and salaries

More people are going head-to-head, competing for a limited number of roles.

Public sector cuts are starting to have an impact on Wellington’s job market with new data showing a drop in salaries and job listings - and an increase in those applying for roles.

Data from Trade Me jobs shows the capital’s average salary is down 3.3 per cent on the previous quarter to $72,062 - the biggest percentage drop across every region in the country.

The average salary in the Government and council sector sits at $81,798 according to the numbers from Trade Me.

The nationwide average salary dipped 2.2 per cent this quarter, to $70,761; though despite the decrease, the nominal amount is higher than the same period last year.

Wellington also had the biggest drop in job listings year on year, although the city experienced a 7.9 per cent boost for the quarter.

Job listings for roles in central government have fallen off a cliff - down 77.2 per cent year on year, and 34.1 per cent for the quarter.

Meanwhile, more people are competing for a smaller number of roles, with the number of job applications in Wellington up 17.7 per cent, compared to the period between October to December.

In Auckland, job applications are up 15.1 per cent.

Trade Me Jobs sales director Matt Tolich said a “couple of factors” are behind this, including increased migration levels and population growth.

“Also some organisations are downsizing due to the current economic climate which means there are more available candidates in the market.”

Tolich suggested there are still “a lot of great jobs out there” for those in the firing line across the public sector.

“A million people moved jobs last year. 460,000 of those moved into a new category of role, so there is an opportunity within this downsizing for candidates to find a new career path.”

He acknowledged it was a “tough time” to find a new role, with a mood of change looming around ministries and departments.

Analysis from the Herald shows thousands of roles across the public sector are in the firing line, with the axe looming over people from various departments, agencies, and ministries.

Agencies have been urged to find cost savings by the Government, in a bid to streamline services and focus on outcomes and results. Moves from various departments, in reply to the Government’s directive, have come under fire from the opposition and various unions.

As cuts start to take shape ahead of Budget Day, the impact is being felt across the Wellington job market, which hosts the largest proportion of public servants in the country, according to data from the Public Service Association, a union representing the sector which currently has many in the firing line.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, public service agency reform and transport.