Employment indicators

Public sector leads job gains

29 Jun 2026

Rob Heyes

Our take on the latest Employment indicators (Mon 29 Jun 2026)

Filled jobs

0.3%

0.1%

0.7%

In May (sa)

In April (sa)

From May 2025

The key numbers...

Filled job numbers rose 0.3% (2,515 jobs) between April and May 2026 (seasonally adjusted). April’s 0.2% rise was revised down to a 0.1% fall.
Employment in the primary sector was flat in May (seasonally adjusted) following a 0.1% decline in April. Goods-producing sector jobs edged up 0.1% (242 jobs), having been flat in April. The service sector, which makes up more than three-quarters of all jobs, saw job growth of 0.4% (1,977 jobs), following a 0.1% fall in April.
Growth in job numbers of 0.7% from May 2025 represented the fastest annual increase in just over two years and the third consecutive rise, reflecting the jobs market’s recent upward momentum.
Comparing May 2026 with May 2025, the most jobs were created in public administration (6,337), healthcare (5,728), education (3,245) and financial services (3,018). Jobs also continue to grow in agriculture, mining, utilities, transport, and arts and recreation. Recent job falls in wholesale, retail and construction look to have petered out. Professional services (-2,091), manufacturing (-1,884) and administrative services (-1,573) saw the biggest falls.
Job growth strengthened in the South Island, with job numbers rising 2.0% between May 2025 and May 2026, following 1.3% growth between April 2025 and April 2026. North Island job growth turned positive, as job numbers increased 0.3% between May 2025 and May 2026 following almost two years of declines. The West Coast (2.7%pa) and Canterbury (2.4%pa) continue to lead regional job growth. In the North Island, Waikato (1.4%) once again posted the fastest rate of job growth.
Employment of young people continues its decline, with jobs filled by 30-year-olds and under down 1.4%pa in May 2026 compared with May 2025 – the 34th consecutive fall. Jobs filled by over-30s rose 0.9%pa – the 10th consecutive increase. Jobs filled by males rose 0.2% between May 2025 and May 2026 following two years of falls. The number of jobs filled by women rose 0.5%.

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...and our reaction

We continue to see signs that the labour market is beginning to turn, with the public sector (government, healthcare and education) providing a backbone of job growth. Several industries that have been shedding jobs throughout 2024 and 2025, such as retail, wholesale trade, and construction, are showing signs that employment has reached a floor.
April’s job numbers were worse than we initially thought, with downward revisions reflecting uncertainty created by conflict in the Middle East. However, May’s numbers looked to have largely shrugged off these concerns (barring any revisions next month).
Job gains continue in industries less affected by broader economic conditions such as public administration, healthcare and education. Gains in public administration could be at the expense of jobs in professional services and administrative services as government agencies look to bring more services in house.
It would be easy to conclude that the public sector is solely responsible for job growth, but financial services continues to create jobs, as do transport, postal and warehousing, and agriculture – despite higher fuel prices.
It’s also encouraging to see positive job growth in parts of the North Island, given the North-South divide that has persisted for almost a year now. However, continued job losses among younger people remains a concern.

Latest updates

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Employment indicators

Public sector leads job gains

The key numbers...

...and our reaction

Latest updates

Continued patchy jobs growth

Further weak employment recovery

Healthcare leads job growth