Jobs data shows modest momentum in July
New Zealand’s job market showed signs of stabilisation in July 2025, with filled jobs rising 0.2% month-on-month, marking the second consecutive monthly gain, according to the Monthly Employment Indicator (MEI) released by Stats NZ.
Despite likely downward revisions, the data suggests employment conditions may have turned a corner. On an annual basis, employment fell by 0.7%, a softer decline compared to -1.3% in June.
The gains were uneven across sectors. The services sector, which accounts for about 75% of total employment, posted its strongest monthly gain since 2023 (+0.3% m/m).
In contrast, the goods-producing sector continues to struggle, with filled jobs falling 0.1% in July and remaining 6.1% below their September 2023 peak. Construction remains a key weak spot, down 5.6% over the year.
Public sector-led growth drove half of July’s gains, with upticks in healthcare, education, and public administration. Meanwhile, private sector improvements were seen in agriculture, retail, finance, and professional services. The primary sector recorded a 0.5% lift in jobs – its best result in months– buoyed by improving commodity prices.
NZ Employment Summary (July 2025)
|
Sector / Category |
Figure |
|---|---|
|
Total Filled Jobs (Monthly Change) |
0.20% |
|
Total Filled Jobs (Annual Change) |
-0.70% |
|
Services Sector (Monthly Change) |
0.30% |
|
Goods-Producing Sector (Monthly Change) |
-0.10% |
|
Goods-Producing Sector (from Sep 2023 peak) |
-6.10% |
|
Construction Sector (Annual Change) |
-5.60% |
|
Primary Sector (Monthly Change) |
0.50% |
|
Youth (15-19) Employment (Annual Change) |
-8.50% |
|
Male Employment (Annual Change) |
-1.50% |
|
Female Employment (Annual Change) |
-0.50% |
|
Canterbury & Otago (Regional Growth) |
Strongest growth |
|
Auckland & Wellington (Regional Change) |
Declines ≥ -1.5% |
Youth employment remained under pressure, with filled jobs for those aged 15-19 down 8.5% over the year. Hiring conditions also remain weakest for men, down 1.5% annually compared to a 0.5% fall for women.
Regionally, Canterbury and Otago posted the strongest job growth, while Auckland and Wellington continued to lag, each recording annual declines of 1.5% or more.
ASB senior economist Mark Smith noted that stabilisation is a welcome development but warned that overall labour market slack remains elevated. ASB expects the Reserve Bank to cut the Official Cash Rate (OCR) by 50 basis points before year-end to support employment and broader economic momentum.
Do you think NZ’s labour market has turned a corner – or is this just a pause? Let us know what you think.
