As New Zealand enters 2025, employment continues to become more challenging, with Kiwi employment confidence currently trailing behind Australia.
Robert Walters, a recruitment consultancy, conducted a survey involving 7,750 businesses and workers across New Zealand and Australia, with 39% of the respondents being from New Zealand.
The survey indicates that 71% of Australian businesses plan to increase employee salaries this year, while 64% of employees anticipate receiving a pay rise.
Meanwhile in New Zealand, only 62% of businesses are planning to offer pay raises in 2025, while just 57% of employees anticipate a salary increase.
49% of companies in Australia are planning to distribute bonus payments to their employees this year, while 31% of businesses in New Zealand have similar plans.
“Employers that fail to align with changing expectations struggle to attract and retain top talent,” Robert Walters chief executive for Australia and New Zealand Shay Peters said.
Data indicated that 39% of New Zealanders felt their salaries were not keeping pace with inflation, while only 22% of employers believed their employees were struggling to manage the rising cost of living. In comparison, 45% of Australian employees reported that their salaries were not aligned with inflation, while only 23% of employers shared that belief.
Only 15% of surveyed workers in Australia and 20% in New Zealand reported that their salaries are keeping pace with the increasing cost of living.
“A significant perception gap exists between employers and employees regarding salary adequacy amidst rising living costs,” the report said.
The migration trend from New Zealand to Australia has also intensified, with many Kiwis looking for jobs abroad due to the perceived lack of opportunities at home.