There is a sense of cautious optimism among New Zealand employers, despite continuing economic challenges and major changes in the workforce.
This is according to findings from the 2025/26 Beyond Recruitment Economic & Labour Report.
Published annually, the report provides an in-depth analysis of employers' perspectives on the economy, recruitment trends, and the broader employment environment across New Zealand.
This year's findings indicate a stabilisation in employer confidence following the post-COVID recovery, with 58% of businesses describing the past year as challenging, significantly lower than the 71% reported in 2023.
The most optimistic groups were small and medium-sized enterprises (SMEs) and larger companies, while the largest enterprises (with over 1,000 employees) expressed somewhat more cautious views.
The primary concern identified was the slowing economy, cited by 31% of respondents, followed by rising operational costs and regulatory changes, both at 25%.
Organisations are striving to balance cost management with business growth, with 37% aiming to maintain their current workforce and 28% planning to expand, particularly among SME employers
In addition, the adoption of artificial intelligence has seen significant growth, with 83% of companies either testing or actively using AI tools, a notable increase from previous years.
Despite initial apprehensions, most employers now view AI as a complement to, rather than a replacement for, human roles. In fact, 43% are actively upskilling their teams to thrive in AI-integrated work environments.
“While organisations are prudent in their hiring strategies, their resilience is clear. Employers are strategically positioning themselves to capitalise on anticipated market improvements, particularly through workforce development and increased adoption of technology like artificial intelligence,” said Liza Viz, Chief Executive of Beyond Recruitment.
“Now is the time for employers to invest in their people and focus on future-proofing their workforce. The competition for talent will heighten once again, making skills development and building future talent pools a key priority for Aotearoa organisations,” she added.
Furthermore, hybrid work has become firmly established, with 77% of employers offering flexible working models. Remote work and flexible hours have now become standard employee benefits, and workplaces are being redesigned to accommodate long-term shifts rather than temporary fixes.
The 2025/26 report is based on feedback from more than 500 senior employment decision-makers across various sectors in New Zealand, including government, healthcare, manufacturing, technology, and professional services.