The Impact of New Zealand's Election on the Job Market

We have known since January this year, when the date of the 14^{th of} October election would be, and it seems like we have been talking about it all year. Not long to go now.

As we all know, it’s a tough time out there for many people in New Zealand right now and the upcoming election isn’t currently helping that, due to the uncertainty of what the political landscape will look like after the 14^th.

Here at Muster, we are seeing the impact first hand in a number of ways including candidates not applying for roles and clients not committing to new hires. Is there logic to this? What will change depending on the election result?

Let’s look at the major factors in play that are currently affecting the employment market.

Economic Policies: One of the most significant ways an election can affect the job market is through changes in economic policies. New Zealand's government plays a crucial role in shaping the nation's economy, and the policies it implements can directly impact businesses and, in turn, job creation.

Following the election, the new government may introduce policies aimed at stimulating economic growth, which can lead to increased job opportunities in various sectors, they may also not do this.

Infrastructure Development: Elections often highlight the need for infrastructure improvements and development. Campaign promises to invest in infrastructure can translate into job opportunities in construction, engineering, and related industries. If the newly elected government follows through on its infrastructure plans, it could lead to a surge in job openings in these sectors.

Industry specific impacts: Muster predominantly recruits in the automotive sector and this has been widely impacted largely due to the CCD – Clean Car Discount. Due to the uncertainty of who the new government will be and whether they will continue with the CCD, automotive sales are currently very low as consumers wait until the outcome of the election. This is directly impacting businesses in and connected to the sector so may be less committed to hiring.

Immigration Policies: Elections can also influence immigration policies, affecting the availability of skilled workers in the job market.  The current government has made many changes to immigration laws. The jury is out on whether this has helped immigration to the benefit of all parties involved. A change in government may well lead to things changing again so creating further uncertainty for migrants and businesses.

Wage and Labour Laws: Changes in labour laws and minimum wage rates are common discussion points during election campaigns. A government's stance on these issues can directly impact the labour market. Policies favouring minimum wage hikes can improve the financial well-being of low-wage workers but may also influence hiring decisions for employers which has a knock-on impact across the wider market.

All these factors are currently in play and affecting the overall job market across the country. It impacts certain sectors more than others as seen with the automotive sector at present.

It’s really important that we all follow things closely to understand the changes on our job or hiring prospects and furthermore we all have a say to determine the outcome. 

At Muster, we understand the challenges and complexities that this election season brings to job seekers and hiring managers alike. We are here to provide guidance and support during these uncertain times. Whether you're an individual seeking new opportunities or a business looking to make strategic hiring decisions, our team is dedicated to helping you navigate the evolving landscape.



Now, more than ever, it's crucial to stay informed, stay engaged, and have a voice in shaping the future of New Zealand's job market. Contact us today to discuss how we can assist you in achieving your job-seeking or hiring goals, and let's work together to navigate the impact of the election on your career or business.