State of the Market – Q1 2026

By
Pete Thompson
Published on
April 15, 2026

A year that started with momentum

We kicked off 2026 with something we haven’t felt in a while: genuine momentum. After a challenging couple of years, there was a noticeable shift in sentiment across the market. Budgets were starting to loosen, transformation programmes were being revisited, and hiring activity was beginning to follow. It felt like this might finally be the year things opened up again.

And then, as we’ve seen so often in recent times, the script changed.

Uncertainty returns, but hiring doesn’t stop

Geopolitical tension and rising fuel pressures have introduced a fresh layer of uncertainty, forcing many organisations to reassess how they operate day to day. For some, that has meant revisiting remote and hybrid working models to ensure business continuity. For others, it has meant taking a more cautious approach to hiring in the short term.

But if the past few years have taught us anything, it’s that disruption doesn’t necessarily slow recruitment, it reshapes it.

The shift to contract and flexibility

That shift is already playing out. Across the market, hiring hasn’t disappeared, but it has evolved. Organisations are still moving forward, but they are doing so in a more flexible, lower-risk way. Contracting has become the dominant approach, with the majority of hiring focused on accessing capability to deliver outcomes, rather than adding permanent headcount.

It’s less about growth for growth’s sake, and more about execution.

Auckland: driving transformation

Nowhere is this more evident than in the Auckland IT and Digital market, where demand continues to be driven by transformation programmes. Organisations across sectors such as banking, telco, health and retail are investing in delivery-focused roles, ensuring projects continue to move forward despite broader uncertainty.

Even emerging areas like AI are beginning to surface, although for now, demand remains targeted and exploratory rather than widespread.

Wellington: cautious but moving

In Wellington, the story is slightly different. The corporate market remains subdued, with limited job volume and a noticeable level of caution from both employers and candidates. Many professionals are opting to stay put rather than risk instability, while organisations are taking a more measured approach to hiring decisions.

At the same time, contracting is providing pockets of activity, particularly within government, offering some short-term momentum in an otherwise quiet market.

A more competitive candidate market

From a data perspective, the market is becoming increasingly competitive. Job adverts have declined, while application volumes have remained steady, leading to a higher number of candidates per role.

On the surface, this suggests a talent-rich market, but the reality is more nuanced. High-quality candidates are still in demand and remain selective about their next move, meaning attracting top talent continues to require a thoughtful and well-positioned approach.

What this means for 2026

What we’re seeing is not a market that has stalled, but one that is adapting. The organisations navigating this environment most effectively are those that are leaning into flexibility, prioritising delivery, and staying close to market conditions.

While uncertainty may continue to shape sentiment in the short term, the underlying activity remains. Transformation programmes are still progressing, businesses are still investing in capability, and hiring is still happening. The difference is in how it’s being approached.

The question for 2026 isn’t whether organisations will hire. It’s how they choose to do it.

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