Federated Farmers – Rates cap potential and pitfalls need scrutiny

Source: Federated Farmers

By Sandra Faulkner, Federated Farmers local government spokesperson
At Federated Farmers, we’re all in favour of greater local government spending restraint.
We’re not in favour of so severely straight-jacketing council budget decisions that vital infrastructure upgrades and maintenance are delayed or cancelled.
That might sound like Federated Farmers wants a bob each way on the Government’s proposed 2-4% cap on council rates.
In reality, it reflects the tricky balance between calls for fiscal discipline and the unavoidable cost pressures councils face.
I think all of us, even councils, agree on one thing – that the trajectory of rates hikes is unaffordable for increasing numbers of families and businesses.
But the 2-4% rates cap the Government wants in place by 2029 is a blunt tool that could have unintended consequences.
Exempt from the proposed cap are charges for waste, drinking and stormwater services.
With an estimated network renewal backlog of as much as $47.9 billion because of previous under-investment, the Government knows we have to catch up on this vital work.
Work on other infrastructure particularly vital to rural areas – roading, bridges, drainage, flood protection – is also plagued by significant council (and central government) under-investment in many districts.
When councillors factor in paying interest on rising council debt, never mind soaring costs for contractors and raw materials, a rates cap will create temptation – even necessity – to delay or delete important capital works.
Federated Farmers believes there should be a rates cap exemption for targeted road and infrastructure rates, just as is proposed for three waters charges.
The Government’s thinking is that a rates cap will force councils to prioritise ‘must haves’ and pare back on ‘nice to haves’.
As a generalisation, smaller rural councils probably spend less on nice to haves.
A rates cap, including on district councils already grappling with costs of providing for high numbers of visitors and tourists, could end up cutting into budgets for ‘must haves’.
Faced with a rates cap, councils might also look to offset revenue shortfalls by hiking other charges or selling assets.
Rates are the largest source of income for local authorities, making up on average 57% of total operating revenue.
Other revenue comes from council-owned trading entities like ports and airports, but these tend to be owned by metropolitan councils rather than smaller district councils.
Councils also charge fees for everything from swimming pool entry to parking, building consents and liquor licences. These services are often subsidised by general rates.
To offset a rates cap, these fees could be raised.
Lots of people like the notion of ‘user pays’ – unless they’re a user.
Perhaps farmers would welcome higher council fees for rubbish collection, swimming pools, sports playing surfaces, food outlet inspections and other services they don’t get to use as much as town residents.
But they’re less likely to be happy with fee hikes for compliance inspections, resource consents and dog registration.
There’s a common misconception the rates cap will mean no property owner’s rates bill can increase by more than 4% in any year. But the restriction is on a council’s total revenue from rates.
Just as is the case now, a property owner’s share of total rates is determined by capital (or land) value.
In three-yearly revaluations, if your property value has risen more than the average for the district, you’ll pay more in rates – and vice-versa.
Two other ideas Feds will raise in our submission on the rates cap proposal relate to referenda and benchmarking.
We think councils should need residents’ consent for large spends on commercial facilities and ventures, like stadiums and conference centres.
A referendum would be required, for example, where the spend is greater than $500 per resident.
This would allow councils to provide community well-being services and activities, while restrain them from destroying their balance sheets through risky investments beyond their core purpose.
If we’re serious about driving council costs down, there’s also a case for much improved nationwide benchmarking of council costs.
Armed with detailed information on average costs for road maintenance, playground installation, reserves mowing and so on, councillors could drill down into spending – and challenge officers’ reports.
With council rates bills now one of the biggest household costs – and one of the most prominent lines in a farm’s budget – the rates cap and related issues deserve solid debate in the run-up to the general election.
Federated Farmers will be vocal in the debate, just as we have been in talk of council restructuring and amalgamation, to make sure the rural voice and priorities are prominent. 

Fire Safety – Fire and Emergency received calls for 17 incidents during today’s strike

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand received calls for 17 incidents between 12pm and 1pm today, Friday 20 February, the twelfth time the New Zealand Professional Firefighters Union (NZPFU) has taken strike action.
Of these, 13 incidents were in areas impacted by the strike.
Two incidents were reports of fires at residential properties, one of which was a pot smoking on a stove and the other was a fire in a property’s roof space.
Two incidents were reports of car fires, which did not result in a fire and two incidents were reports of rubbish bin fires.
One incident was a motor vehicle crash with no rescue required. Five were fire alarms which did not result in a fire.
There was also a significant fire at Northcote College on Auckland’s North Shore.
Assistant National Commander Ron Devlin says Fire and Emergency was first notified of the fire through a fire alarm at 12.17pm.
“As part of our contingency planning to manage reduced capability during strike action, we do not dispatch crews to automatic fire alarm activations unless there are multiple activations or confirming 111 calls.
“Following a second fire alarm notification crews were dispatched at 12.19pm.
“While heading to the scene we also received a 111 call from a member of the public.
“A commander was first to arrive at the scene at 12.29pm followed by a volunteer brigade from Silverdale at 12.34pm.
“They were later joined by additional volunteer brigades and career crews arrived following the conclusion of today’s strike action.
“Students and staff were evacuated and thankfully there are no reports of any injuries. Approximately 20 crews remain at the scene and the fire is now under control.”
Ron Devlin says Fire and Emergency continues to urge the NZPFU to call off planned strikes while the process of facilitation is underway.
“I want to thank our 11,800 volunteers across the country, especially those who were called to attend events in areas impacted by the strike.
“I would also like to thank our Operational Commanders and Communication Centre Managers, who managed the response.”

Property Market – $40m wiped from property market in Q4, but figures show improvement on last year – RealEstate

Source: RealEstate.co.nz

  • 1,374 listings recorded a price drop in Q4 2025, the lowest number in two years
  • Only 3% of all listings were reduced, the lowest portion in two years 
  • $41,309,345 million was the total value of price reductions, the lowest total price drop in a quarter
  • Stable OCR could be first sign of a property market recovery in 2026.

Latest data from realestate.co.nz shows that more than $40 million was trimmed from property asking prices across New Zealand in the last quarter of 2025.

In a shift that may signal improving market conditions, the total amount that dropped out of the market was $14 million less than the $55 million slashed in Q4 of 2024 *

In Q4 2025, fewer properties reduced the price of their listing. And of the listings that did drop their price, they did so by slightly less than any other quarter.

*This data reflects the difference between a property's original asking price when listed on realestate.co.nz and its price at the point of sale or withdrawal. While it doesn’t show the final sale price, it provides a strong signal of how much sellers are adjusting to meet buyer demand.

Is the property market in recovery?

Vanessa Williams, spokesperson for realestate.co.nz, says the latest figures could be an early indicator that the market is beginning to swing in a different direction.

“While $40 million coming out of the market is still significant, fewer vendors reduced the price of their property last quarter than we’ve seen over the two years prior, an indication that the overall amount trimmed from the market in Q4 is a result not of smaller reductions but by fewer properties needing to reduce their price.”

Williams says: “This indicates that sellers may be starting to price more realistically from the outset, and buyer confidence could be slowly returning. It’s not a full recovery yet, but it could be one of the first signs that conditions are beginning to stabilise.”

How much are sellers cutting property asking prices by?

Nationally, vendors who reduced their asking prices in Q4 2025 took an average of $30,065 off each listing.

Regionally, Marlborough recorded the largest average drop, with sellers trimming $50,500 from their original asking prices. Gisborne followed at $49,333, while Northland, Wellington, and Coromandel rounded out the top five with average reductions of $38,479, $37,607, and $35,645, respectively.

Overall, fewer vendors dropped their prices in the final quarter of 2025, with the lowest percentage of price drops occurring in 11 of the 19 regions.

Signs of stabilisation heading into 2026?

The data suggests the intense repricing seen throughout 2025 may be easing.

“The significant amounts we saw slashed from the market in the earlier quarters of 2025 certainly hasn’t continued, which is a sign confidence is slowly returning to the market,” says Williams. “The stability of the OCR in this week’s announcement should also be an encouraging sign that the market may not be too far away from hitting its stride in 2026.”

realestate.co.nz is helping buyers and sellers move. Properties listed on realestate.co.nz that drop their price can receive free billboard advertising, while buyers who have saved them are alerted instantly.

About realestate.co.nz | New Zealand’s Best Small Workplace (2025)

Realestate.co.nz – your home for property search.

We’ve been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry. We are certified carbon neutral (2024 & 2025) and in 2025, realestate.co.nz was crowned Best Small/Micro Workplace in New Zealand by Great Place to Work.

Dedicated only to property, our mission is to empower people with a property search tool they can use to find the life they want to live. With residential, lifestyle, rural and commercial property listings, realestate.co.nz is the place to start for those looking to buy or sell property.  

Whatever life you’re searching for, it all starts here.  

Want more property insights?

Market insights: Search by suburb to see median sale prices, popular property types and trends over time: https://www.realestate.co.nz/insights

 Glossary of terms:  

Average asking price (AAP) is neither a valuation nor the sale price. It is an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released simultaneously.  

Price drop reflects the difference between a property's original asking price when listed on realestate.co.nz and its price at the point of sale or withdrawal. While it doesn’t show the final sale price, it provides a strong signal of how much sellers are adjusting to meet buyer demand.

Electrical and mechanical machinery lead imports for year ended January 2026 – Overseas merchandise trade: January 2026 – Stats NZ news story and information release

Economy – RBNZ Governor Anna Breman: Monetary policy must focus on the future

Source: Reserve Bank of New Zealand

20 February 2026 – “To achieve our inflation target, we need to look ahead to the future, while learning from the past and understanding the present”, said Reserve Bank Governor Anna Breman in a speech at a Business Canterbury lunch today.  

“It takes time for the Official Cash Rate to influence the economy and inflation. Therefore, we base our monetary policy decisions on a forecast of where inflation is heading, and not on where inflation is today. The inflation data is important because it helps us shape the forecast and analyse the drivers of inflation.”

Governor Breman spoke to the current economic situation, as outlined in the February Monetary Policy Statement, as a good example of the need to remain focused on the future. “I want to stress that we are never comfortable having inflation outside our target range. But we must accept what has already happened, understand it, and then look ahead. That's what our Remit asks of us.”

The time it takes monetary policy to influence the economy and the fact that economic data are often volatile and lagging are good reasons to remain forward looking. In addition, focusing on the future helps financial markets anticipate how the Monetary Policy Committee (MPC) will react to new information about inflationary pressure.

“This allows financial conditions to change in response to new data – in a way that helps us to achieve our mandate – even before the MPC has met to consider the new data and adjust monetary policy,” Governor Breman explained.

Discussing Wednesday's decision and economic outlook, Governor Breman acknowledged that the path to 2 percent inflation has been bumpy, but that we expect inflation to already be back in our target range in the first quarter of this year. “We are confident that inflation will return to the 2 percent target midpoint over the next 12 months”, she said. Meeting with households and businesses around the country is a good opportunity to get information about how the economy and inflation is evolving.

“That is a positive outlook for 2026. But it doesn't mean we can put our feet up”, Governor Breman said. “Today's volatile world only promises to deliver more curve balls. You only have to look at the growth in artificial intelligence and the major shifts in geopolitical relationships to know that the world is changing. The transition is unlikely to be a smooth one.”

“Importantly, being forward focused does not imply that monetary policy is on a pre-set course. We will adjust our plans as we get new information, and always with a focus on the future.”

More information

Download Governor Breman's speech (PDF, 1.73MB): https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=ae794fd52c&e=f3c68946f8

Monetary Policy Statement February 2026: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=c6ec54e6f8&e=f3c68946f8

Fire Safety – Central Otago moving to a Prohibited Fire Season

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand has declared a Prohibited Fire Season in Central Otago beginning at 8am this Saturday, 21 February, banning all outdoor fires until further notice.
District Manager Craig Gold says the ban may come as a surprise to many because of a slow start to summer and Central Otago not experiencing its usual long hot summer days.
“However, it’s been quite deceptive. Our grasslands are now very dry, and the fire risk has been slowly but steadily increasing – notably in Cromwell, Lauder, Clyde and Butchers Dam.
“We have reached the threshold where we need to declare a Prohibited Fire Season,” Craig Gold says.
“While several large, permitted burns have been successfully carried out over the last couple of months, it’s no longer safe to do so, and we appreciate the support of the farming community, in particular, in recognising that,” he says.
Central Otago is predominantly a grassland area with a lot of fuel for potentially disastrous fires that would be extremely difficult to control.
“We want people to be very vigilant,” Craig Gold says.
“A ban on all outdoor fires will reduce the number of callouts and allow Fire and Emergency crews to manage other fires that may occur.”
Anyone wanting to know if they are in the fire ban area, or just not sure, can input their address into Fire and Emergency’s www.checkitsalright website for specific information on their property and location.

Fonterra provides Farmgate Milk Price and earnings update

 Source: Fonterra

  • Fonterra expecting to distribute Mainland Group earnings as special Mainland dividend
  • Fonterra confirms FY26 forecast earnings guidance from continuing operations
  • Fonterra lifts 2025/26 season forecast Farmgate Milk Price midpoint from $9.00 per kgMS to $9.50 per kgMS

Fonterra Co-operative Group Ltd has today lifted its forecast Farmgate Milk Price for the 2025/26 season and narrowed its forecast range.
 
The midpoint has increased from $9.00 per kgMS to $9.50 per kgMS, with the forecast range lifting and narrowing from $8.50-$9.50 per kgMS to $9.20-$9.80 per kgMS.
 
CEO Miles Hurrell says the Co-op has been able to make these changes based on recent improvements in global commodity prices combined with Fonterra’s well contracted sales book.
 
“As we have seen, global dairy prices have been volatile across the season. Following the declines at the end of 2025, prices have lifted in the last four Global Dairy Trade events.
 
“Global milk production remains above seasonal norms, meaning the risk of further volatility in pricing remains. As such, we continue to take a balanced approach with our Farmgate Milk Price forecast.
 
“Our team is focused on enhancing returns for farmer shareholders through the Farmgate Milk Price and earnings, by delivering on our strategy,” says Mr Hurrell.
 
Update on Mainland Group earnings
 
Fonterra is today advising that it intends to pay out 100% of underlying earnings generated by Mainland Group during FY26 while still under Fonterra ownership.
 
The earnings will be distributed through a special Mainland dividend payment to shareholders and unit holders following the completion of the sale to Lactalis.
 
“We are currently finalising our interim accounts and can indicate that we expect the special Mainland dividend to be in the range of 14-18 cents per share, which reflects the operating performance of the Mainland business during the first half of this year driven by ongoing cost management and favourable input commodity prices.
 
“This remains subject to the settlement date of the transaction and the finalisation of our financial statements and audit process.
 
“Fonterra’s FY26 forecast earnings guidance from continuing operations remains unchanged at 45-65 cents per share. It is intended that Fonterra’s dividend policy will be applied to these continuing earnings.  
 
“Our interim dividend from continuing operations will be confirmed when we release our FY26 interim results and an update on the special Mainland dividend will be given at this time,” says Mr Hurrell.
 
As previously indicated, Fonterra expects the transaction to be complete in the first quarter of the 2026 calendar year, subject to separation of the businesses from Fonterra and remaining regulatory approvals being received.
 
About Fonterra  
 
Fonterra is a co-operative owned and supplied by thousands of farming families across Aotearoa New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers and employees share the goodness of our milk through innovative consumer, foodservice and ingredients brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. We are passionate about supporting our communities byDoing Good Together.

South Korea: Life sentence for Ex-President Yoon a significant step towards accountability

Source: Amnesty Internatonal

Responding to today’s guilty verdict and life sentence for former South Korean President Yoon for the imposition of martial law in December 2024, Amnesty International's Deputy Regional Director Sarah Brooks said:

“Today's verdict and sentence is an important step towards accountability which demonstrates that no one is above the law in South Korea, including a former president.

“This ruling holds Yoon accountable for the unlawful imposition of martial law in December 2024, which lacked proper legal justification under both domestic and international law and placed fundamental rights at risk.

“South Korea's independent courts and citizen resistance have shown how the rule of law and strong institutional checks can effectively counter authoritarian practices. This decision must now be followed by comprehensive measures to ensure such violations never happen again.”

Background

Seoul Central District Court today handed down a life sentence to former South Korean President Yoon Suk Yeol after finding him guilty of leading an insurrection over his declaration of martial law. Yoon is expected to appeal. The ruling follows prosecutors’ call for the death penalty in this case in January 2026. This case is among eight criminal trials with Yoon as the defendant.

On 3 December 2024, former President Yoon declared martial law in a late-night address broadcast live on TV. The move was met with mass protests, and lawmakers forced their way into the National Assembly to vote to lift the martial law order within hours. Yoon was subsequently impeached and removed from office in a separate case by the Constitutional Court.

Health – The Royal Australasian College of Surgeons (RACS) recognises that a 4.4% increase in private health insurance premiums will place additional pressure on Australian families

Source: Royal Australasian College of Surgeons (RACS)

Australians are paying more for cover. But the funding flowing to patient care is not keeping pace with the real cost of delivering surgery.

Over the past three years, more than 400,000 Australians have downgraded from top-tier (“gold”) hospital cover to lower levels of insurance. Many policies now come with exclusions, meaning patients discover they are not fully covered when they need treatment.

“Bronze”, “silver” and “gold” labels hide huge differences in exclusions, excesses and clinical coverage, meaning two people on the same tier can face wildly different bills. Australians need real transparency and standardisation so consumers can compare value and know what they’re actually paying for before they need surgery.

At the same time, insurers are returning a smaller share of premiums directly to care than in previous years. Industry data shows benefits paid as a proportion of premiums are sitting in the mid-80% range – down from around 88% historically.

RACS welcomes legislation introduced this week that would ban “product phoenixing” – a practice used by some private health insurers to rebrand or replace policies in ways that drive up premiums without delivering additional value to consumers. But wider reform is needed.

RACS believes Australians deserve stronger guarantees that the vast majority of every premium dollar goes to patient care.

Surgeons are also dealing with a system where:

Medicare rebates have not kept pace with inflation for decades.
private health insurers pay different benefit amounts for the same procedure, sometimes differing by hundreds of dollars. Surgeons are forced to work across dozens of varying fee schedules to reduce patient gaps.
no-gap payments have failed to keep up with rising healthcare costs for decades.

When Medicare and private insurance benefits fall behind the real cost of operating theatres, staff, equipment and compliance, the shortfall does not vanish. It is either absorbed by hospitals and doctors or passed on to patients. This funding gap is the key driver behind rising out-of-pocket costs. RACS recognises the need to improve the affordability of specialist care. At the same time, we understand many surgeons are already prioritising their patients' needs at personal financial cost and are struggling to keep up.

Fee reform is a two-way street

If government expects fee restraint, then Medicare must be properly indexed and insurers must ensure a higher proportion of premiums go directly to clinical care. RACS supports a minimum 90% payout ratio so Australians can be confident their premiums are funding treatment, not overhead.

Transparency measures such as the Australian Government's mandatory Medical Costs Finder system can help patients understand fees. But transparency alone will not fix an underfunded system.

Private healthcare plays a critical role in keeping pressure off the public hospital system. If private surgery becomes financially unsustainable, waiting lists in the public sector will inevitably grow.

Australia delivers strong surgical outcomes by international standards. That system has been built on high standards and a functioning public–private balance. Rising premiums must translate into real value for patients – not reduced coverage and higher out-of-pocket costs.

RACS stands ready to work with government and insurers to modernise Medicare, improve consistency in insurer payments, and ensure patients are not left carrying the burden of a funding model that no longer reflects the real cost of safe surgical care.

Strategic hiring, rising pay pressures and a borderless workforce

Source: Robert Walters

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

Auckland, New Zealand, 19th 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, 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.” 

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.” 

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.” 

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.