New insights from the 2025/26 Beyond Recruitment Economic & Labour Report reveal a mood of measured optimism among New Zealand employers, even as they navigate ongoing economic pressures and significant shifts in the nature of work.
Published annually, Beyond Recruitment’s Economic & Labour Report offers a comprehensive overview of how employers are feeling about the economy, recruitment activity, and the wider employment landscape across Aotearoa.
This year’s findings show a steadying of employer confidence in the wake of the post-COVID recovery, with 58% of businesses describing the past year as difficult—down notably from 71% in 2023. The most confident groups were SMEs and larger firms, while the largest enterprises (with over 1,000 employees) expressed slightly more cautious sentiments.
The top concern identified was the slowing economy (31%), followed by mounting operational expenses and regulatory shifts (both at 25%). Organisations are seeking to balance cost control with business growth, with 37% looking to maintain their current headcount and 28% planning to expand—led predominantly by SME employers.
Adoption of artificial intelligence has grown markedly, with 83% of companies either trialling or actively deploying AI tools—a significant rise from prior years. Despite initial concerns, most employers now see AI as enhancing, rather than replacing, human roles. In fact, 43% are actively upskilling their teams to adapt to AI-integrated working environments.
Liza Viz, Chief Executive of Beyond Recruitment, commented:
“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.”
Hybrid work has firmly taken root, with 77% of employers offering flexible working models. Remote work and flexible hours are now standardised employee benefits, while workplaces are being redesigned to reflect long-term change rather than temporary solutions.
Further findings from the report include:
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Pay increases are stabilising, with 38% of businesses planning wage rises around the 3% mark.
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Employer satisfaction with local talent is growing, reducing the need to source candidates from overseas.
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Diversity, equity and inclusion (DEI) is becoming central to executive hiring, shaping recruitment practices at the leadership level.
The 2025/26 report is based on responses from over 500 senior employment decision-makers across sectors including government, healthcare, manufacturing, technology, and professional services.
