Business price indexes: December 2025 quarter – Stats NZ information release

Economy – There’s still time to assess the effects of prior OCR cuts – Cotality

Source: Cotality – Commentary by Chief Property Economist Kelvin Davidson

As widely expected, the Reserve Bank’s Monetary Policy Committee, under new Governor Anna Breman, held the official cash rate unchanged at 2.25% today. This was firmly in line with the forward guidance from the previous meeting in November and it reflects the expectation that spare capacity in the economy should ultimately pull inflation back down again.
Many of the key economic forecasts released today were essentially unchanged from three months ago. The RBNZ expects the economy to expand by just short of 3% this year, with employment rising consistently and the unemployment rate edging down from 5.4% to 5.0% by the end of 2026. CPI inflation may already be back within the 1-3% target band this quarter.
The decision also noted that “if the economy evolves as expected, monetary policy is likely to remain accommodative for some time”. 
This suggests no immediate rush to bump up the OCR. Even so, the forecast track was ‘pulled forward’ a little, pointing to the probability of a rate rise late this year rather than early next year, as previously indicated. This really just endorses what financial markets and many commentators had already been suggesting was likely to happen and reflects the Bank’s suggestion that “settings will gradually normalise”.
For the housing market, it also just remains a case of waiting to see how a range of conflicting forces play out. On one hand, although banks have already been pushing small moves in some mortgage rates lately, generally they remain fairly stable and much lower than before. This will be supporting property sales activity and house prices.
By contrast, however, a cautious attitude still prevails across the market, and it’s difficult to see a sharp turnaround for activity or prices until jobs growth picks up and the unemployment rate falls more emphatically. This looks set to be a story for later in 2026 rather than sooner.
Indeed, the RBNZ itself predicts that property values could even fall a bit further in the next 3-6 months before edging higher later this year. They could end up flat for 2026 as a whole and only rise by 3.0% in 2027. 
Based on the recent rise in physical housing stock versus population, and also the new restraint of debt to income ratio caps, it’s hard to disagree too much with those modest expectations.

University Research – Lab discovery offers hope for lymphoedema – UoA

Source: University of Auckland – UoA

A newly discovered molecule shows promise for treating painful lymphoedema.

Scientists have made a breakthrough that could lead to effective treatments for lymphoedema, a painful swelling condition for which there is currently no cure.

Lymphoedema can be congenital or caused by an injury, but it mostly occurs as an unintended consequence following breast-cancer treatment.

It occurs when the lymphatic system, which moves fluid throughout the body via specialised vessels, is damaged, leading to fluid accumulation in tissues.

“Our group of researchers has discovered a new molecule and pathway that together promote lymphatic vessel growth,” says Dr Jonathan Astin, a senior lecturer in molecular medicine and pathology in the Faculty of Medical and Health Sciences at Waipapa Taumata Rau, University of Auckland. See Cell Reports.

“We initially made this discovery in zebrafish but have also shown that the factor works in human lymphatic cells.”

The scientists discovered the growth-promoting molecule, known as ‘insulin-like growth factor’, or IGF, accelerates the growth of lymphatic vessels in zebrafish, so has potential to repair damaged vessels.

They then worked with a University colleague, senior research fellow Dr Justin Rustenhoven, to grow human cells in the lab and found the IGF, could also ‘instruct’ human lymphatic vessels to grow.

“This work is of interest to the medical community as it provides an additional way to induce lymphatic vessel growth,” says Astin.

“This is especially important for people with lymphoedema. In Aotearoa New Zealand, approximately 20 percent of women who have lymph nodes removed as part of breast-cancer treatment will develop lymphoedema, and currently there is no cure.”

There is another molecule, vascular endothelial growth factor (VEGF), that also promotes the growth of lymphatic vessels; the IGF molecule may work together with VEGF to promote the growth of lymphatic vessels, says Astin.

The work was conducted in Astin’s lab by then doctoral student Dr Wenxuan Chen and involved collaborations with Dr Kate Lee, Dr Justin Rustenhoven and Professor Stefan Bohlander, all in the Faculty of Medical and Health Sciences, as well as a lab in the US.

“We use fish primarily because they're very simple, but they're still remarkably similar to us,” Astin says.

“The advantage of using fish is we can fluorescently label lymphatic vessels so that they glow and then image vessel growth in a whole larva or embryo and not impact its growth at all.

“We can just watch it grow, and things happen much quicker in a fish, because they develop much faster.”

The next step will be to test an IGF‑based therapy on mice with lymphoedema to see whether it helps.

Astin is cautious about promising too much but says this holds the potential to become a therapy for this painful, incurable condition in the future.

Read about ‘openness in the use of animals for research’: http://www.auckland.ac.nz/en/research/about-our-research/openness-in-animal-research.html

Advocacy – Up to 50 New Zealanders are fighting Israel’s genocide in Gaza – PSNA

Source: Palestinian Solidarity Network Aotearoa – PSNA

 

PSNA is calling for government accountability to stop and punish New Zealanders going to fight in Israel’s genocidal war in Gaza.

 

A UK report by Classified, from official Israeli sources, shows 39 dual New Zealand/Israeli citizens, and 11 others with more than one additional passport, are serving in the Israeli Defence Force, which is carrying out genocide in Gaza. (The full dataset is in Hebrew at the foot of the article at this link

 

“The news that New Zealanders are participating in ongoing mass killing and starvation of Palestinians in Gaza is abhorrent,” says Palestine Solidarity Network Aotearoa Co-Chair Maher Nazzal. “Our government must do what it can to stop these New Zealanders perpetrating genocide.”

 

“Israel’s political and military leaders are charged with war crimes by the International Criminal Court. Israel’s Prime Minister Netanyahu, for example, is wanted for trial on war crimes and crimes against humanity.”

 

“As well as killing perhaps hundreds of thousands and wholesale starvation of Palestinians in Gaza, Israel is still systematically destroying all civilian infrastructure: schools, hospitals, churches and mosques, farmland and crops.  Even New Zealanders’ graves in World War One cemeteries are not immune.”

 

“There’s no excuse for anyone fighting for a state committing genocide” says Nazzal. “Our government must step in and rigorously investigate the actions of each and every one of these 50 New Zealanders in the IDF.”

 

“New Zealand has obligations under the international Genocide Convention to do what it can stop a genocide.  New Zealand charged Mark Tayor for membership of ISIS in 2004.  There is ample precedent.  The government must be consistent.”

 

“All of these New Zealanders serving in the IDF have various degrees of culpability in the genocide, certainly the moment they set foot in Gaza.  But they would also be liable for actions at military facilities inside Israel, fuelling up bombers, for example, or calculating missile coordinates.”

 

“These soldiers must be identified, and their service in Israel’s army examined, alongside their social media accounts and those of the brigades and soldiers they joined.”

 

“The government must also collaborate with international agencies for evidence of how many of these people have already been identified for investigation of war crimes.”

 

“The Hind Rajab Foundation is working to identify specific Israeli war criminals for referral to the International Court of Justice,” says Nazzal.

 

New Zealand law does not specifically prohibit citizens from fighting overseas. But the government must act in this case, where New Zealand citizens are participating in a genocide, and also under our Fourth Geneva Convention obligations, where these New Zealand citizens are also enforcing an illegal occupation of Palestinian Territory.

 

“Despite the so-called October 2025 ceasefire, Israel has continued its daily killing of Palestinians, destruction of infrastructure and occupation creep.  Israel still refuses to allow the agreed amount of food, water and humanitarian supplies to enter Gaza.”

 

“Here is a case of direct responsibility by New Zealand citizens, about which the government can’t wash its hands and ignore.”

 

Maher Nazzal

Co-Chair PSNA

Tamariki are still no safer now than when Malachi died – 24 more child deaths at hands of carers

Source: Aroturuki Tamariki | Independent Children’s Monitor

A second review by Aroturuki Tamariki | Independent Children’s Monitor, on the implementation of the recommendations made by Dame Karen Poutasi following the death of Malachi Subecz has found tamariki (children) are still no safer now than when Malachi died.

The review, Towards a stronger safety net to prevent abuse of children also looks at whether government agencies have done the things they said they would in their own internal reviews, how reports of concern are currently responded to, and if anything is changing after other children die.

Aroturuki Tamariki Chief Executive Arran Jones says 18 months on from its first review, three years on from Dame Karen’s report and four years on from Malachi’s death, work is just beginning. In October 2025 Government accepted all of Dame Karen’s recommendations and started a cross-agency work programme to implement them. In late January a new inter-agency hub for children whose sole parents are in prison was established, and the first phase of mandatory training for core children’s workers got underway.

“These are important first steps. Until change happens on the ground and across all communities, tamariki will continue to be no safer,” says Mr Jones.

Of the 14 recommendations made by Dame Karen, only two are complete. One (recommendation 14) was the Monitor’s first review of implementation, the other (recommendation 11) was considered complete as no action was determined to be required.

The review found tamariki continue to fall through gaps in the safety net. Between December 2021 and June 2025, another 24 tamariki were killed by someone meant to be caring for them. Many were babies, most tamariki were under the age of five. Half of the 24 tamariki were known to Oranga Tamariki – that is, someone had made one or more reports of concern about them. Most of the perpetrators were known to Police.

“Our review also found that even if everything Dame Karen said was needed to close the gaps is done, we are not confident that Oranga Tamariki will be able to respond appropriately.

“Beyond responding to Dame Karen’s recommendations, we need urgent improvements to the child protection system so it can respond effectively to reports of concern about the safety of tamariki. Put simply, Oranga Tamariki social workers need to be able to get in the car and go and see a child with their own eyes. The people reporting concerns include community social workers, police officers, teachers and health staff.

“On every monitoring visit we hear from people who are having to make repeated reports of concern to Oranga Tamariki before action is taken. We hear from frontline Oranga Tamariki staff who tell us how concerned they are about the tamariki they are unable to get to. Every day they are making tough decisions, not based on the safety of tamariki but on who they can get to with the level of resourcing they have,” says Mr Jones.

The data shows this too. Despite the number of reports of concern to Oranga Tamariki increasing, the number that local offices take action on has remained relatively constant over the last nine years – at around 40,000.

This is also reflected in the regional variation in response by Oranga Tamariki offices to reports of concern referred by the national contact centre for further action. Some offices take no further action on more than half of reports of concern referred to them for action by the national contact centre. Yet these are reports of concern that were triaged and considered serious enough to warrant a response. In 2024/25, the Oranga Tamariki national contact centre referred nearly 81,000 reports of concern to local offices for further action. More than 32,000 of these had no further action locally.

What Dame Karen called for was a child protection system that is always able to respond when needed. She also called for a well-resourced community sector that can help ensure all reports of concern are responded to – providing early intervention, organising support for whānau and preventing issues escalating further. While there are prototypes and pilots demonstrating how this can work, New Zealand is far from having a comprehensive response to child protection.

The review also found that most other government agencies are making reports of concern to Oranga Tamariki and have put some training in place for staff in lieu of Oranga Tamariki providing this. More is needed. Across agencies, greater understanding of how to identify abuse is needed. As noted by Dr Kelly, frontline health professionals receive little or no training in interpreting childhood injuries.

The Privacy Commissioner has also provided clear guidance to those working with children that it is okay to share information to keep children safe.

Mr Jones acknowledged the work of the late Dame Karen and her determination to see change after decades of reviews pointing to similar gaps that she found. He briefed her on an early draft of the second review in late 2025.

The review is available online at: aroturuki.govt.nz/reports/safety-net

Notes:

A report of concern can be made when someone is worried about a child’s safety or wellbeing

A report of concern is the term used for when someone tells Oranga Tamariki that they are worried about a child’s safety or wellbeing. The person making the report of concern may believe that the child is being abused, harmed or neglected. Abuse can be physical, sexual or emotional.

If someone believes a child is in immediate danger they should call the Police. To make a report of concern about a child or young person you are worried about contact Oranga Tamariki 0508 326 459.

About Aroturuki Tamariki | Independent Children’s Monitor

Aroturuki Tamariki | Independent Children’s Monitor checks that organisations supporting and working with tamariki, rangatahi and their whānau, are meeting their needs, delivering services effectively, and improving outcomes. We monitor compliance with the Oranga Tamariki Act and the associated regulations, including the National Care Standards Regulations. We also look at how the wider system (such as early intervention) is supporting tamariki and rangatahi under the Oversight of Oranga Tamariki System Act. Aroturuki Tamariki works closely with its partners in the oversight system, Mana Mokopuna – Children’s Commissioner, and the Office of the Ombudsman.

Oversight agencies call for faster change to keep children safe following second review by Independent Children’s Monitor

Source: Independent Children’s Monitor, and Children’s Commissioner and Ombudsman

Oversight agencies are calling on government agencies in the children’s system to act faster in the wake of a report published today which has found children are still no safer than when Malachi Subecz was killed by his carer in 2021.

Aroturuki Tamariki | Independent Children’s Monitor has released its second review of the implementation of the 2022 Poutasi Report recommendations,Towards a stronger safety net to prevent abuse of children, which examines the progress made by government and agencies on recommendations made by the late Dame Karen Poutasi aimed at improving the child protection system.

Aroturuki Tamariki | Independent Children’s Monitor Chief Executive Arran Jones says since Malachi’s death, another 24 children were killed by someone who was meant to be caring for them between December 2021 and June 2025.

“Many of these were babies, most were under the age of five. This is equivalent to a primary school classroom of 24 children, gone in just three and a half years.”

Our review has found the gaps identified by Dame Karen have not been closed, that Oranga Tamariki is still not always able to respond when it needs to keep a child safe, and children continue fall through the gaps and die.

Mr Jones released the review alongside the heads of the other two agencies responsible for oversight of the Oranga Tamariki system, the Children’s Commissioner and the Ombudsman.

Mr Jones says successive reviews going back at least two decades have pointed to the gaps in the system. Dame Karen noted her 2022 report findings were not new, and just last week Coroner Anderson also pointed to the similar themes and recommendations being made year after year, often with little evidence of substantive change taking place.

“The Government’s decision in October last year to accept all of Dame Karen’s recommendations, was a good first step. While there are some promising pilots, we need to see continued priority given to making sustained change.”

“Crucially, this review found that even if the gaps in the safety net are closed, a fundamental problem remains. That is the ability of Oranga Tamariki to respond when it needs to. Social workers need to be able to get in the car and go and check children are safe. We continue to hear from frontline staff across government and community organisations that this is not always happening when it should,” Mr Jones said.

Children’s Commissioner Dr Claire Achmad says the findings of this new review highlight the need for urgent, sustained action to make real change for children’s safety, off the back of the Government’s acceptance last year of Dame Dr Poutasi’s recommendations.

“The stark truth that 24 children – most of them babies – have died through abuse by the person meant to be caring for them must shock us into action. The lives of other children depend on it. Children and young people who have talked to me following the launch of our Dear Children campaign have emphasised to me how urgent the focus on children’s safety must be.

“Changes in our systems and communities must be made now to keep all our children safe. Between Dame Karen’s recommendations and last week’s recommendations from Coroner Anderson, the pathway for change is clear. Our nation’s children require the children’s system, and all of us at the community level, to actively work together to prioritise them and their safety. Because the fact is, all forms of child abuse and neglect are 100% preventable, but it takes all of us working together to prioritise children at every level of our society.”

Chief Ombudsman John Allen says the findings raise the important need for cross-agency collaboration – for health, education, welfare and justice – to keep working together for a better care and protection system. This is the type of shift that Dame Poutasi was calling for.”

“There are some ‘green shoots’ out there such as the new in-person hub pilot at the Oranga Tamariki national contact centre. Hub staff are helping to identify and address needs of at risk children when their sole parent enters prison. I’m also encouraged by what is happening in Whakatane, where Oranga Tamariki is working closely with a community-based provider Te Pūkāea o te Waiora. Community led organisations know the whānau well and are better equipped to intervene early and provide immediate support while at the same time taking pressure off the wider system.”

The Monitor’s review, Towards a stronger safety net to prevent abuse of children, is available on its website: https://aroturuki.govt.nz/reports/safety-net

Notes

The oversight system

The oversight of oranga tamariki system’s role is threefold, with a focus on the rights and wellbeing of children and young people known to Oranga Tamariki either through care and protection or youth justice.

Aroturuki Tamariki | Independent Children’s Monitor checks that organisations supporting and working with children and young people known to Oranga Tamariki are meeting their needs, delivering services effectively, improving outcomes and complying with the Oranga Tamariki Act and the associated regulations.

Mana Mokopuna – Children’s Commissioner is the independent advocate for the rights, best interests, wellbeing and outcomes of children and young people under the age of 25 who are or have been in the system, as well as being the independent advocate for all of New Zealand’s children.

The Ombudsman is the independent watchdog of Government, and receives complaints from children and young people (and their whānau and representatives) about decisions and actions affecting them in the system. The Ombudsman investigates concerns where needed.

Economy – OCR on hold at 2.25% with inflation expected to fall – Reserve Bank of NZ

Source: Reserve Bank of New Zealand

18 February 2026 – Annual consumers price inflation was slightly above the Monetary Policy Committee's 1 to 3 percent target band at the end of 2025. Increases in food and electricity prices and local council rates were the biggest contributors to above-target inflation.

The economy is at an early stage in its recovery. With ongoing strength in commodity prices, economic activity in the agricultural sector and regional New Zealand remains strong. Although residential and business investment is increasing, households remain cautious in their spending. The labour market is stabilising, but unemployment remains elevated. House price growth remains weak, dampening household wealth and inclination to spend.

In response to previous cuts in the OCR, economic growth is broadening across sectors of the economy, such as manufacturing, construction and some retail. Economic growth is expected to increase over 2026.

Inflation is most likely returning to within the Committee's 1 to 3 percent target band in the current quarter. The Committee is confident that inflation will fall to the 2 percent midpoint over the next 12 months due to spare capacity in the economy, modest wage growth, and core inflation within the target band.

Risks to the inflation outlook are balanced. The global environment remains highly uncertain. Domestically, greater caution by households in their spending decisions could slow the pace of New Zealand's economic recovery, risking inflation falling below the target midpoint. But with demand increasing in the economy, businesses could try to increase prices faster than expected, leaving inflation above the target midpoint.

The Committee agreed to hold the OCR at 2.25 percent. If the economy evolves as expected, monetary policy is likely to remain accommodative for some time. The Committee will continue to assess incoming data carefully. As the recovery strengthens and inflation falls sustainably towards the target midpoint, monetary policy settings will gradually normalise.

Read the full statement and Record of meeting: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=cc3fd2de11&e=f3c68946f8

Gumboot Friday Wraps January in Hope: Giving 1,311 Young Kiwis a Lifeline

Source: Gumboot Friday

In January 2026, Gumboot Friday provided 1,311 young people aged 5–25 with free counselling support, delivering a total of 1,928 sessions nationwide. Every session is no-cost, requires no referral, and is chosen by the young person from a network of registered counsellors on the Gumboot Friday platform.

Breaking it down by age group:

  • 277 young people aged 5–11 (27%)
  • 382 young people aged 12–17 (29%)
  • 652 young people aged 18–25 (50%)

These figures reflect the steady, month-after-month work of getting rangatahi into a safe space to talk and finally get things off their chest when they need to.

“I look at these January numbers and see so many young people—some as little as 5 or 6—who got to sit down with a counsellor who really listened, no rush, no judgement, just letting them be heard for the first time in a while probably. That’s powerful stuff for kids who’ve been carrying heavy things.

“None of this happens without the incredible support from Kiwis who donate to I Am Hope. Government funding covers the counselling sessions themselves, while your donations to I Am Hope keep the Gumboot Friday platform running—onboarding counsellors, maintaining the system, running our Little People Big Feelings programme, and supporting the wider I Am Hope foundation. We’re deeply grateful, from the bottom of my heart. Thank you for believing in our kids and making sure help is there when they need it,” says I Am Hope founder Mike King.

If you or someone you know under 25 needs someone to talk to, visit www.gumbootfriday.com to connect with a counsellor today.

To donate, fundraise, or get involved with I Am Hope and Gumboot Friday, head to www.gumbootfriday.com or text HOPE to 469 for a $3 donation.

EMA – Employment Law Changes Bring Certainty for Employers and Contractors

Source: EMA

Yesterday’s third reading of the Employment Relations Amendment Bill gives employers long-sought clarity on defining the status of contractors in the workplace, says the Employers and Manufacturers Association (EMA).
The EMA’s Head of Advocacy, Alan McDonald, said that wish for clarity predates the recent Uber court decision and gives employers a four-gateway test that they can apply in determining the status of contractors. In addition, for those working on contracts the new legislation clarifies what they can do within their contract, including the ability to work for other clients.
“The Bill also reverses an unpopular measure imposed by the previous government requiring employers to sign up new employees to union-based collectives and to provide information to new employees about joining unions,” says McDonald.
“In a time of declining union membership, this was seen by many of our employers as a ploy to help unions shore up their memberships, especially when employees then had to choose to opt out of that union membership after 30 days.
“The change to remediation measures is another positive for employers. The idea that reinstatement should be the first priority for remediation – if a hearing in the Employment Relations Authority (ERA) finds in favour of the employee – was anathema to many employers and had been imposed on them by the previous Employment Relations Amendment Bill.
“Generally, if the case has reached the authority, the relationship between the employer and employee is irretrievably broken – and expecting that employee to be amicably re-integrated into the workforce is unrealistic. It’s telling that of all the cases that went before the ERA, only about half a dozen employees were reinstated. They are the anomalies, not the norm.
“It also seems logical that employees who contribute to their own dismissal should have that behaviour taken into account when they later raise claims against the employer. It was counterintuitive that such behaviour was sometimes disregarded by the authority when awards for unjustified dismissal were made.”
“The other major change is that employees earning more than $200,000 will no longer be able to bring an unjustified dismissal claim.
“That threshold has risen from the previous $180,000, and it’s important to remember that it applies only to unjustified dismissal claims. The grounds for any other type of claim remain unchanged.
“These changes will help rebalance some of the current inequities facing employers,” says McDonald.
In today’s competitive and challenging workplace, employers need confidence and certainty that their employment relations practices are correct and within the law.

Employment Research – Strategic hiring, rising pay pressures and a borderless workforce – Robert Walters

Source: Robert Walters

Robert Walters identifies New Zealand's key labour and salary trends for 2026

Auckland, New Zealand, 18th Feb 2026 - 2026 will be a year of strategic hiring, increased pressure on salaries, and rising workforce mobility across New Zealand, according to new research from global talent solutions partner Robert Walters.  

The findings come from its latest Salary Guide, launching today, which surveyed over 2,300 white-collar New Zealand professionals across 12 different industries.  

Shay Peters, CEO, Robert Walters Australia & New Zealand: ”The New Zealand labour market is showing a renewed sense of optimism, but caution remains. Businesses are hiring again, skills shortages persist, and employees are carefully weighing where they work, what they earn, and whether to relocate. This combination is reshaping the workforce: organisations face pressure to attract and retain talent, address capability gaps, and balance pay with cost-of-living concerns, while employees are increasingly strategic about career moves and mobility. How companies respond now will have a direct impact on productivity, growth, and their ability to secure and retain the talent they need for success in the future.” 

Key labour market trends  

Hiring rebounds, but jobseekers remain cautious after 2025 turmoil

Market confidence is gradual but strengthening, with 76% of New Zealand businesses planning to hire in 2026, up from 66% in 2025. 

Hiring demand varies regionally. Canterbury leads hiring intent at 78%, followed by Auckland (75%) and Wellington (72%). 

Despite this uplift in business confidence, employee mobility has cooled. 53% of New Zealand professionals are considering a role change this year, down from 63% in 2025, suggesting a more cautious workforce. 

Shay comments: ”Hiring intent has increased since last year, signalling that businesses are ready to move forward. However, employees are taking a more considered approach. From conversations we've been having with job seekers, we know the unstable condition of the 2025 labour market is making people concerned about job prospects in 2026. Economic uncertainty over the past year has made many professionals very risk-aware. The labour market is gradually rebalancing, rather than surging.” 

Salary growth remains modest as cost-of-living pressures persist

In 2025, 57% of New Zealand professionals received a pay rise, although most increases fell within the modest 2.5%-5% range, limiting their real impact. 

67% of New Zealand businesses intend to offer salary increases in 2026, while 56% of professionals expect one. 

42% of employees feel underpaid, but 83% of employers believe salaries are keeping pace with the cost of living, highlighting a perception gap. 

Salary dissatisfaction varies regionally. In Canterbury, 46% of professionals do not believe their salary matches the cost of living. In Auckland this stands at 42%, and in Wellington 39%. 

Shay comments: ”As businesses come out of last year's restructures, organisations have an opportunity to reassess remuneration. Where salary increases are not feasible, employers must focus on career progression, flexibility, and skills development. It's no secret the movement of New Zealand talent to Australia is well underway. Dissatisfaction around pay is a high retention risk, especially as overseas markets actively target New Zealand talent.” 

Skills shortages squeeze productivity across key sectors

Skills shortages remain critical, with 81% of New Zealand employers experiencing gaps over the past year. 

Regional pressure varies, with 52% of Auckland employers reporting shortages, followed by Wellington (49%) and Canterbury (39%). 

The most acute gaps are in industry-specific expertise (52%), digital and technology capability (37%), and leadership skills (31%) - these areas closely linked to productivity and organisational performance. 

Hiring challenges are compounded by unsuitable applicants (62%) and a lack of formal qualifications (53%). 

 Shay comments: ”Skills shortages are a severe productivity issue. When capability gaps persist, delivery slows and growth opportunities are missed. 

New Zealand organisations must take a long-term view, investing in leadership development, digital capability, and structured workforce planning. Skills gaps directly impact productivity and growth, and with more talent continuing to move to Australia, this challenge will intensify unless decisive action is taken now. Waiting for the market to correct itself is no longer a viable strategy in a competitive global talent landscape.” 

AI adoption accelerates, but concerns remain

AI integration is gaining momentum. 86% of New Zealand businesses are actively promoting AI, and 70% of employers say AI skills are important. 

Adoption at employee level is already high, with 69% using AI in their roles. However, 51% express concern about AI's future impact on their job.

Shay comments: ”New Zealand businesses are embracing AI at pace, but adoption must be matched with transparency and training. The fact that over half of employees are concerned about AI's future impact highlights the importance of clear communication and structured upskilling. 

At the speed AI is developing, it's critical that soft skills like leadership, collaboration, and problem-solving are not lost but actively encouraged alongside new technology. 

Done right, AI can increase efficiency, boost productivity, and complement human talent, supporting the goals outlined in New Zealand's 2025 AI Strategy for a productive, future-ready workforce.” 

Rising relocation trends are creating a borderless workforce

Mobility remains a defining feature of the New Zealand workforce. 58% of professionals are open to relocating for work. 

Interest varies regionally. In Auckland, 64% would consider relocating, compared with 53% in Wellington and 51% in Canterbury. 

Australia is the most attractive destination, with 65% naming it as their top choice. Domestically, 54% would consider relocating within New Zealand. Internationally, 23% would consider moving to the UK and 21% to Europe. 

The primary drivers of relocation are higher salaries (71%), better job opportunities (65%), lifestyle changes (53%), and cost of living (38%). 

Interest in Australians relocating to New Zealand has increased this year to 17% (up from 2% in 2025). 

Shay comments: ”The strength of interest in Australia underscores how interconnected the two labour markets have become. For many professionals, relocation is no longer aspirational, it is a strategic financial and career decision. 

New Zealand employers must recognise that they are competing not just locally, but internationally. Organisations that create compelling career pathways, competitive remuneration and flexible work models will be better positioned to retain talent in an increasingly borderless market.” 

About the Salary Guide: The Robert Walters 2026 Salary Guide provides a comprehensive overview of hiring intentions, salary trends, skills shortages, and workforce mobility across New Zealand. With insights from over 2,300 respondents, the guide highlights how businesses and employees are navigating an evolving labour market shaped by cost-of-living pressures, technological adoption, and mobility opportunities.

About Robert Walters:  

With more than 3,100 people in 30 countries, Robert Walters delivers recruitment consultancy, staffing, recruitment process outsourcing and managed services across the globe. From traditional recruitment and staffing to end-to-end talent management, our consultants are experts at matching highly skilled people to permanent, contract and interim roles across all professional disciplines.