Talent teams, recruitment firms urged to 'rethink hiring strategies'
Talent teams and recruitment agencies across New Zealand are being urged to "rethink their hiring strategies" as job applications across the country surge to record highs.
JobAdder's survey revealed that job applications in New Zealand nearly doubled (49%) in the past year.
The surge is challenging recruitment agencies and in-house talent teams in sifting through an unprecedented volume of applications.
"This surge in job applications highlights a fundamental shift; recruitment is no longer about attracting candidates, but managing high volumes and identifying quality talent," said Martin Herbst, CEO of jobadder.com, in a statement.
"Agencies must rethink their hiring strategies to handle this evolving landscape efficiently."
Despite the surge, there were signs that the job application surge is adjusting across the country, with the average number of applications per position at recruitment agencies declining to 43 candidates in the fourth quarter.
According to Herbst, the decline in the fourth quarter may signal a shift in candidate behaviour or reflect broader economic conditions influencing hiring and application volumes.
"We're seeing application numbers start to adjust in New Zealand. It will be important to monitor whether this slowdown is part of a broader trend or a temporary fluctuation," the CEO said.
"If this trend holds, application volumes could stabilise in 2025, easing pressure on recruiters."
Meanwhile, the report found the record-high job applications coincide with declining job opportunities for jobseekers.
The JobAdder report revealed that New Zealand saw the sharpest decline in job creation compared to Australia and the United Kingdom, with a 17% decrease in 2024.
In fact, the report uncovered a growing preference for temporary roles, as these positions accounted for 88% of all placements in 2024.
Permanent roles just accounted for 12% of placements, down from 15% in 2023.
"The job markets reflect broader economic conditions, and 2024 has been a challenging year for New Zealand," Herbst said. "Employers are hesitant to overcommit to new hires while relying on temporary staff to manage fluctuating workloads."
