The recruitment market has shown us a mixed bag as we move through the first quarter of 2025. January began with unexpected activity, with higher job listing volumes and renewed business optimism driving decision-makers to greenlight projects and vacancies that had not been filled in the pre-Christmas rush. This initial flurry of activity was particularly welcome after the 2024 that was.
However, February and March have revealed a more nuanced picture. While the appetite to recruit remains, we’re seeing inconsistent demand patterns. Hiring processes are taking a while, as they were in 2024—often 6-8 weeks to close mid-level roles—with additional stages being added as organisations seek reassurance before committing.
This stop-start pattern reflects a market in transition. The demand for talent exists, but it’s tempered by hesitation from businesses questioning timing. There’s been a noticeable uplift in contracting activity, suggesting organisations are testing the waters before making permanent commitments.
The phrase we’re hearing repeatedly from clients is “cautiously optimistic.” Most acknowledge that while 2025 will present challenges, they anticipate improvement over last year, particularly in the second half. This forward-looking confidence is encouraging, even as immediate conditions remain challenging.
Budget constraints continue to impact hiring decisions, with many organisations working to minimise external costs. This has created interesting dynamics in the talent acquisition space:
- Organisations without dedicated HR or talent teams are struggling to source candidates independently and finding themselves overwhelmed by application volumes
- Those with internal recruitment capabilities face challenges in delivering quality shortlists quickly, particularly for specialist roles
- Many clients express confidence that conditions will improve from June/July onwards as interest rates ease and consumer confidence returns
Despite these constraints, there is a cautious optimism that was missing throughout much of 2024. Projects are moving forward, and businesses are planning for growth—even if implementation remains measured.
Perhaps the most significant shift we’re witnessing is in candidate behaviour. After several years of caution and stability-seeking, professionals are again open to career moves. We’re seeing two to three times the number of candidates reaching out for career discussions compared to early 2023 and 2024.
This mobility trend is driven by several factors:
- Many professionals have remained in roles for 3-5 years (having chosen not to move during uncertain times) and are now hitting natural career transition points
- Improved consumer confidence following a challenging economic period
- New Year’s resolutions prompting career reassessment (yes, it is a thing!!)
Application numbers have increased substantially across advertised roles, though quality remains variable. Interestingly, we’re also seeing increased numbers of professionals returning to New Zealand, having achieved their goals working offshore since the COVID disruption. These returnees cite family or lifestyle as their primary motivation—bringing valuable international experience back to the local market. The question now is: ‘Can the New Zealand economy support this talent and create good enough opportunities to secure this talent for the long term?’
As we move through 2025, the key strategic considerations for businesses when it comes to recruitment are:
- Retention will become increasingly critical. With more professionals open to moves, organisations should assess their retention strategies before the anticipated mid-year market improvement triggers increased movement.
- Hiring processes may need streamlining. While thorough evaluation remains important, excessively lengthy processes risk losing quality candidates in an increasingly mobile market.
- Strategic workforce planning becomes essential. The contracting uptick suggests value in flexible staffing models that can adapt to changing market conditions.
- Specialist recruitment partnerships offer efficiency. With internal teams struggling with application volumes, particularly for specialist roles, targeted recruitment partnerships can deliver quality over quantity.
While we haven’t yet reached the market many are hoping for, the indicators suggest 2025 will see gradual improvement.
Organisations that prepare strategically for this shift—balancing caution with readiness to act—will be best positioned to secure the talent they need as conditions improve.
