Gen Z and Regional New Zealand Drive Labour Market Comeback

Young Kiwis and the South Island are rewriting the rules of employment as Gen Z powers ahead in casual roles and Otago leads the national job surge.

While economic volatility and cost-of-living pressures are challenging employers across the board, new data from Employment Hero’s September jobs insights reveals surprising resilience in two areas: the country’s youngest workers and the South Island. Together, they’re leading a grassroots labour market revival that’s reshaping the employment landscape.

Gen Z: Moving fast and flexibly

No generation has been more underestimated than Gen Z. But September’s data puts any doubt to rest. Among all age groups, 18–24 year olds recorded the strongest employment growth, up 10.2% year-on-year and rising 1.8% on a monthly basis. It’s a signal that entry-level talent is not only in demand but also beginning to define the rhythm of work across key industries.

Much of this growth is being driven by casual roles, which jumped 8.5% YoY. For employers navigating uncertainty, casual contracts offer flexibility. For Gen Z, they offer something else: quick income, rapid learning and foot-in-the-door access.

“Gen Z entered the workforce during a time of rapid change, but they’re gaining traction in high-energy, high-involvement sectors like hospitality, logistics and retail industries that offer fast-paced learning and income opportunities, even if long-term security isn’t always guaranteed. Their momentum is shaping the future of New Zealand’s workforce in real time,” said Neil Webster, Country Manager, Employment Hero New Zealand.

The South Island: Reclaiming momentum

Forget the usual urban centres. While Auckland flatlined at just 0.1% employment growth YoY, the South Island surged ahead with a 6.0% rise. The breakout star? Otago, boasting a staggering 22.2% year-on-year job growth, the highest of any region nationwide.

This shift isn’t just a statistical blip. It’s being driven by real economic activity, particularly in construction, trade services and manufacturing. Infrastructure investment in regional hubs appears to be paying off, bringing with it a renewed sense of stability and opportunity for local employers.

For SMEs, the message is simple: growth doesn’t live exclusively in the big smoke anymore. The South is rising, and those looking to expand their teams may find stronger candidate pipelines and better retention, outside the usual metro hubs.

The wage and hour imbalance

Despite surging employment, wage growth hasn’t kept pace. Median hourly rates fell slightly overall, dropping 0.8% month-on-month across all employment types. Casual workers are feeling the pinch most, with wages down 0.9% YoY to just $25.00 per hour. By comparison, full-time roles hold steady at $38.50, though even that saw a modest dip of 0.8% in the past month.

This growing wage gap is a potential flashpoint. With inflation still in the mix, there’s a real risk of disengagement or burnout among casual workers—especially younger employees who already face barriers to long-term job security.

Tenure tells a slow-burn story

Stability is inching forward but it’s not quite there yet. For workers aged 18–24, more than half (52.4%) are still in roles they’ve held for less than a year. However, there’s an encouraging upward trend: the share of young people staying in roles longer than two years is rising, hinting at improving job “stickiness” as the economy stabilises.

Teen workers defy national slowdown

There’s one stat that truly breaks the mould: hours worked by 14–17 year olds surged 20.5% year-on-year, and 12.4% in just one month. Whether it’s weekend shifts or after-school gigs, teen employment is bouncing back in a big way. It’s another sign that youth workers are stepping into the gap, helping employers plug labour shortages while getting valuable early experience.