New Zealand Job Market Contracts with 27,850 Positions Lost

Recent data reveals that New Zealand has experienced a significant contraction in its job market, with a total of 27,850 jobs lost in June 2025 compared to the previous year. This downturn has particularly affected young Kiwis, who now face increased challenges in securing employment amid a tightening labour market.

The construction sector has been hit the hardest, shedding over 12,000 jobs. Additionally, the manufacturing industry has lost approximately 5,850 positions. The professional, scientific, and technical services sectors have also seen declines, with a loss of 5,150 jobs, while administrative and support services have lost around 4,860 positions.

Understanding the Decline in Job Opportunities

Infometrics principal economist Brad Olsen attributes this decline to several interrelated factors impacting the New Zealand economy. The ongoing adjustments in various sectors, particularly construction, have resulted in reduced demand for labour. Olsen notes that these changes are reflective of broader economic trends, including shifts in consumer demand and investment patterns.

A notable aspect of this job market contraction is the impact on younger workers. With many entry-level positions in the construction and manufacturing industries disappearing, young Kiwis are finding it increasingly difficult to enter the workforce. This demographic traditionally relies on these sectors for initial employment opportunities, and the current landscape presents a considerable challenge for them.

Olsen emphasizes that while the losses are significant, they are not wholly unexpected. The New Zealand economy is navigating through a period of adjustment, influenced by both domestic and international factors. Fluctuations in the global economy, supply chain disruptions, and changes in government policy have all contributed to the current job shortages.

Future Outlook and Opportunities

Looking ahead, Olsen suggests that there may be potential for recovery in certain sectors. He points to the need for adaptability in the workforce as industries evolve and new opportunities arise. As the economy stabilizes, there may be an increase in demand for jobs in areas such as technology and green energy.

Moreover, government initiatives aimed at boosting job creation and supporting workforce development will be crucial in mitigating the effects of this contraction. Policies that encourage training and skills development could help equip young workers with the tools needed to thrive in a changing job market.

In summary, while the job losses reported in June 2025 present a challenging scenario for New Zealand, particularly for young workers, the outlook may improve with strategic initiatives and shifts in industry demand. The ability of the economy to adapt will play a key role in the recovery of the job market in the months and years to come.