New figures show that the local labour market is slowly recovering, but the balance remains uneven across industries.
New Zealand’s labour market is beginning to show early signs of recovery, although the latest figures suggest the improvement remains uneven across industries and regions.
New data released by Infometrics shows filled jobs rose 0.2 percent in April 2026 on a seasonally adjusted basis, adding 4,333 positions during the month. Annual growth reached 0.5 percent, the strongest yearly increase in two years.
The numbers arrive at a time when many businesses were expecting higher fuel prices, freight disruption and uncertainty linked to Middle East tensions to weigh more heavily on economic activity.
So far, the labour market appears relatively resilient.
“As far as the labour market is concerned, the message so far is not much at all,” said Infometrics.
“The job market recovery remains nascent, but job growth is happening, led by healthcare.”
Healthcare added 5,527 jobs over the year to April, making it the strongest-performing sector nationally. Transport added 2,386 jobs, while agriculture increased by 2,248 positions.
For food manufacturing, grocery and logistics operators, the transport figures stand out.
Fuel supply concerns and rising freight costs were widely expected to place immediate pressure on transport and warehousing businesses. Instead, transport, postal and warehousing has added more than 4,500 jobs since Middle East hostilities began.
The result highlights the resilience of the sector so far, although Infometrics warned the industry could still face pressure if fuel constraints persist.
“As fuel supplies remain constrained, the resilience of the transport industry will be tested,” said the company.
The wider employment picture also shows a recovery that remains selective rather than broad-based.
Service sector employment, which represents more than three-quarters of all jobs nationally, rose 0.2 percent in April. Primary sector employment increased 0.4 percent, marking a third consecutive monthly rise as strong export returns continue supporting agricultural activity.
Manufacturing remains one of the weakest areas of the economy.
The sector lost 3,238 jobs over the year, the largest decline across all industries, although Infometrics noted the pace of job losses is beginning to ease. Construction, media, telecommunications and administrative services also continue to shed workers, but at a slower rate than earlier in the downturn.
That distinction matters for businesses watching for signs of confidence returning.
Many sectors appear to have moved beyond aggressive cost-cutting, but hiring momentum is still cautious and highly targeted.
The latest figures also continue to highlight pressure on younger workers.
Employment among people aged under 30 fell 1.5 percent compared with a year earlier, marking the 33rd consecutive annual decline. Jobs filled by workers aged over 30 rose 1.0 percent over the same period.
For industries already struggling with workforce development and retention, including hospitality, retail, manufacturing and food production, the trend raises longer-term questions around entry-level employment opportunities and training pathways.
Regional performance remains stronger across much of the South Island.
Canterbury recorded annual job growth of 2.3 percent, while Southland, the West Coast and Otago also posted solid gains. Waikato led North Island growth at 1.3 percent.
The latest data does not point to a rapid economic rebound. Businesses are still facing tight margins, elevated costs and ongoing uncertainty around fuel and supply chains.
But the figures do suggest the employment market is no longer deteriorating at the pace seen through earlier stages of the slowdown. The challenge now is whether businesses can maintain that momentum if global cost pressures intensify further.
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