NZ job ads drop 25%, outsourcing poised to bridge gaps
WELLINGTON, NEW ZEALAND — New Zealand’s job ads fell 25% in December 2023 compared to the previous year, according to employment marketplace Seek New Zealand.
In its latest Employment Dashboard, Seek revealed that the information and communication technology (ICT) sector recorded the steepest annual drop at 37% amid an overall decline across most industries.
This was followed by manufacturing, transport, and logistics (down 33%) and retail and consumer products (also down 33%).
The ICT sector has been experiencing consistent declines since early 2022, when volumes peaked. Job ads are now 30% lower than pre-pandemic baselines. The lack of opportunities has affected migration projections for 2024.
This coincides with local educational institutions falling short of producing the required ICT talent. As per research, New Zealand enterprises are also not sufficiently leveraging offshore skills, with only 30% engaging in IT sourcing despite its cost benefits and capabilities.
Considering acute skills shortages, businesses have an opportunity to bridge gaps by increasing outsourcing efforts. The country’s small and medium-sized enterprise landscape can especially benefit from accessing specialized skills, technology, and scale through global partnerships.
With the job ads situation unlikely to improve in the near future, a hybrid onshore-offshore model can help businesses drive efficiency and continue growth.
Over 50% of NZ firms already outsource or plan to. Offshoring can provide specialized expertise and buffer against local shortages.
Information technology (IT) services like network management and software development are the most commonly outsourced in New Zealand. This is followed by Business Process Outsourcing (BPO) services in areas like call centers, HR, and finance.
