By RNZ

The labour market is showing signs of improvement going into 2026, with the first fall in job applications and improved wage increases.

The latest Seek NZ employment and salaries reports show job ads rose 1% in November on the month before, the fifth consecutive monthly gain in advertisements and 9% more than a year ago.

Seek country manager Rob Clark said the gains were not spectacular, but they were indicators of a better labour market next year.

“While the market remains challenging for many job seekers, the consistency of this growth suggests we’re now in a genuine recovery phase rather than simply stabilising.”

Conversely, the number of applicants per job fell 1%, the first fall since January 2022, in nearly four years, suggesting an easing in demand and less competition for positions.

Wages rose just under 1% in the three months ended November, the fastest quarterly growth in 18 months.

“A relatively broad pick up in advertised salaries across the country points to a more positive outlook for the labour market as we head into 2026,” Clark said.

“Annual average advertised salary growth has begun to accelerate, with a notable increase in the most recent quarter.”

The annual wage growth was 2.5%, with the strongest rate in the South Island.

The biggest annual rise of 9.7% was for Real Estate and Property positions, which Clark said might reflect firms hiring in anticipation of a pick-up in the housing market.

Other sectors in demand were healthcare, legal staff, mining and resources, and media – all showing 4% or more rises in salaries.

Stats NZ data showed wages grew 2.1% in the year ended September.

The Seek surveys mirrored other economic indicators that showed the South Island leading activity and recovery.

The strongest annual job advert growth rates were in the south – Southland up 27%, Otago up 17%, and Canterbury up 16%, with strong growth in construction, trades, manufacturing, and transport.

Wellington and Waikato had double-figure growth but Auckland continued to languish with no monthly growth and 1% annual growth.

Canterbury outpaced the country in annual salary growth at 3.2%, with the North Island outside of Auckland and Wellington at 3%.

“For candidates, the message is one of cautious optimism – the market is clearly improving, but that improvement is uneven across regions and sectors,” Clark said.