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SEEK NZ reports 40% year-on-year job ad increase but a 46% fall in job applications

Business / news
SEEK NZ reports 40% year-on-year job ad increase but a 46% fall in job applications
Office chair with 'Now hiring' sign
Image: amtec_photos. Licence: CC BY-SA 2.0

In a reflection of the tight labour market being seen around the country, the SEEK NZ Employment Report is still showing a strong rise in job advertisements, but a big fall in job application responses.

The SEEK report for February showed that national job ads maintained their record-breaking January level and were up 40% year-on-year (y/y).

No individual regions experienced a decline compared with February 2021.

However, applications per job ad fell by 9% from January, notably outside the major cities, with applications being 46% lower than those recorded in February 2021.

Rob Clark, country manager at SEEK NZ said with no change to job ads month-on-month, January and now February have been record months for job ads on seek.co.nz, "although candidates are still hesitant to hit ‘apply’ with applications per ad falling significantly".

The steady tracking of job ads in February may be set to change with several Covid-19 milestones on the horizon, including the predicted Omicron peak and the easing of international travel restrictions, which raise the question of which direction migration will be heading.

“While the reopening of international borders may be cause for some optimism as we can look forward to an influx of workers again for the first time in two years, there is the concern that we will lose candidates to the lure of OE and overseas opportunities," Clark said.

"Applications and people movement will be a key metric to watch over the coming months.” 

In terms of the number of ads posted, by region Manawatu saw the greatest month-on-month increase, rising 11% and, alongside Canterbury and Tasman, the three regions each recorded their highest ever job ads in February. Marlborough and Otago remained steady and Auckland and Bay of Plenty declined by 3% month-on-month, said SEEK NZ.

“While it was a mixed bag across the nation with job ads rising in some regions, falling in others or remaining consistent month-on-month, the Great Job Boom continues and it follows that there never has been a better time for jobseekers to take advantage of new opportunities,” Clark said.

Job ad growth/decline nationally and for major regions. Source: SEEK NZ

By industry, month-on month, Information & Communication Technology roles had the most new job ads on seek.co.nz in February, rising 3%, followed by Manufacturing, Transport and Logistics (+7%) and Trades & Services, which remained steady (0%).

There were increases all round in the Public service sector, with 9% increases for both Education & Training and Community Services & Development roles, while Healthcare & Medical roles were up 3%.

Amid the mostly positive growth there was one (not unexpected) exception.

“Hospitality & Tourism was the most notable exception, falling 13% month-on-month, at the same time as daily COVID cases rose,” Clark said.

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13 Comments

Maybe if employers advertised salary rates more often in ads it may encourage ( or discourage) more applicants  especially if it started a bit of competition based around salary rates thus overall driving increasing salaries. Its time for employers to put their best offer forward and upfront . On a side note my employer is offering approx 2% increase and whilst appreciated it does not keep up with inflation. I will be looking elsewhere to see what others are offering after 11 years of  loyal service

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I've had 2 experiences over the last few years when quite late in the piece they've tried to offer a salary less than the role showed for in the seek search settings where I picked it up. What a waste of my time and their time that turned out to be.

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We must all feel sorry for these employers who cannot fill roles. Not. I found a common question in interviews is "Are you willing less than what you're asking for as part of your job application?" This is typical of kiwis looking out for kiwis. 

This country depends on foreign migrants to undercut everyone else to do the hard work that no one wants to and now that this tap has been turned off, they cannot own up and pay fair market rate/s for decent work.

I had a friend recruiting for a large fast food conglomerate and I just didn't understand that there's there's a labour shortage and they just won't pay someone a couple of extra dollars an hour to keep an entire store open. So basically not paying one person say $2/hr to fill a necessary role means missing out of thousands and thousands of dollars of revenue because of one missing team member at Drive Thru or counter, Assistant Manager or Manager and the whole store is forced to close. 

This problem is compounded when there's a substantial portion of the populace that prefer to simply get the benefit and free accommodation paid for by Housing New Zealand. You can have so much free time with this strategy and do the things you love in life. 

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If someone asked me if I'm prepared to take less that what they advertised in a notice, I'd just get up and leave. Time is the only thing I can't make more of, I wouldn't entertain the notion of doing what I do at an organisation where that was an acceptable way of doing things. 

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Based on recent experience… willingness to lie in job interviews still seems like the most important attribute in getting hired… ‘well, performing data processing in the office furniture industry has been a goal of mine since childhood…’ 

It’s just amazing how the HR industry selects for dishonesty. No one gets in unless they’re able to lie to your face about how this is their dream job and they’re so grateful for the opportunity and really it isn’t about the money. And then you wonder why your office is full of psychopaths! Sigh…

(removes bee from bonnet)

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There are no humans in HR.

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I'm often contacted asking if I'd be interested in a role but the salary offered end up being out of market. Employers seem to be struggling to understand the inflationary environment.

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So do central banks and governments....no wonder employers are lost.

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Me too, but the low ball offers are disappearing. A few smart employers I know are really upping their game. Was offered a contract at an established tech firm not long ago for just over $200 p/h. Didn't take it, but shows some new standards are being set. Remember there's IT firms in Aus offering grads up to $180k per year now.  Hopefully higher rates will flow through to other sectors as well.

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I also wonder how many of those past applicants would have been overseas.

We used to have filter out tens/hundreds of currently based overseas and not eligible to work in NZ applications. Not as much an issue at the moment.

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Dr. Ed Yardeni believes inflation is here to stay mainly due to retiring boomers retiring and leaving behind skill gaps in several critical areas where fewer people are willing to work or being trained.

A great example is the scale and speed of change the global energy sector is going through due to shift in power generation sources, rapid move to EVs, need to be safeguarded from more frequent natural calamities, ageing infrastructure, and so on.

NZ alone will need 23k new electrical workers across expertise such as engineering design & asset planning, lines work, installers, etc. just in the next decade. We're currently training a fraction of this workforce; not to mention the number of skilled tradespeople and engineers who leave NZ for good each year.

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I'd suggest in some industries there is a skills shortage even when the older cohort are still working and aren't moving to a new way of doing things or understanding how to solve problems to the changing landscape.

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I have just done an afternoon's work assembling a dance floor in a marquee in Queenstown. The temp agency paid me NZ$21 an hour. I told the temp guy that I don't normally get out of bed for that, but I would just do it to help out. Good fun actually. The little Argentinian graphic designer who I helped said that driving a truck and forklift in NZ was much more fun than graphic designing in Argie. Her parents, both doctors, could not believe a girl could do such jobs. Great fun, but the pay! I said not to give me such low pay again.

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