Cautious Confidence Grows Among NZ Employers as AI and Workforce Trends Accelerate

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The latest Beyond Recruitment Economic & Labour Report 2025/26 reveals that New Zealand employers are demonstrating renewed confidence and adaptability amid continued economic uncertainty and rapid job transformation across industries.

Compiled annually, Beyond Recruitment’s report provides a pulse check on employer perspectives around hiring intentions, economic conditions, and changes in the national labour force.

This year’s data shows employer confidence beginning to stabilise post-pandemic. Only 58% of employers viewed the past year as challenging—a noticeable drop from 71% in the previous year. Small and medium-sized businesses, along with large enterprises, were the most optimistic, whereas organisations with over 1,000 staff showed slightly more restraint.

Economic slowdown was identified as the top issue for 31% of respondents, closely followed by growing operational costs and changing regulations, both at 25%. While many businesses are cautious, they are not static—37% intend to maintain existing headcounts, and 28% are looking to grow, particularly among SMEs.

AI adoption has seen significant momentum, with 83% of organisations now using or investigating AI tools—reflecting a major shift from earlier years. Rather than viewing AI as a threat, many now see it as a value-add. A notable 43% are proactively reskilling their staff to operate effectively in AI-enhanced workplaces.

Liza Viz, CEO of Beyond Recruitment, noted:
“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 (AI).

“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.”

Flexible working has now become the norm, with 77% of organisations having adopted hybrid models. Remote work and flexible scheduling are now viewed as core employee benefits, while office design continues to evolve to support long-term changes to working patterns.

Other major takeaways from the report include:

A levelling of wage increases around the 3% mark, with 38% of employers planning pay rises in this range.
Growing employer confidence in the domestic talent pool, which is reducing dependence on overseas recruitment.
Stronger commitments to DEI, particularly at executive levels, are reshaping leadership recruitment strategies.

The 2025/26 survey gathered insights from more than 500 senior leaders across a range of sectors, including government, healthcare, manufacturing, technology, and professional services.