New Zealand IT Job Market Update – September 2026
By Richard Vaughan, Managing Director, Younity
September 2026: Momentum holds, despite global headwinds
“We’re seeing some interesting shifts in the IT job market in New Zealand, but overall, the momentum from March this year is still going steady – our placements are up 26 per cent year-on-year (YoY) and the pipeline of upcoming work from our clients continues to grow,” says Richard Vaughan, MD Younity in his latest quarterly update on New Zealand’s IT jobs market.
A Blip, not a Break
The last quarter has largely continued the upward trajectory reported in Younity’s last update, with one notable exception. Hiring activity paused briefly in April, which Richard attributes to external pressures rather than New Zealand’s own economy.
“This quarter has continued with the same positivity as we left the last quarter, other than a minor stall in April,” Richard explains. “It’s probably due to a few geopolitical tensions overseas.”
When major global events happen, it’s natural for organisations to hit pause on non-essential decisions while they take stock of the bigger picture. In this case, that caution proved short-lived, activity picked back up and has kept climbing since, a sign that the local recovery remains resilient even as global conditions stay uncertain.
The Numbers Behind the Recovery
Placement activity from Younity’s desks is a useful window into hiring conditions across the wider market, but Richard cautions that context is important.
“While those figures sound very positive, we do have to bear in mind it comes with a caveat,” he notes. “The starting point was quite a low bar, mainly due to the fact that we’ve had some challenging conditions over the last 24 to 36 months.”
In other words, don’t get too carried away by the percentages. Some of these increases look dramatic mostly because the market had fallen so far to begin with.
With that in mind, here’s what Younity’s April–June placement activity looked like:
- Placements were up 26 % YoY;
- Placements were up 66 % compared with two years ago;
- Public sector placements were up 200% YoY, though from a particularly low base after an extended pull-back in government recruitment;
Private sector placements were up 60 % YoY.
And looking ahead? The pipeline of upcoming work for the current quarter is up 60 % YoY. Hiring intentions, it seems, remain strong across the board.
Permanent to Contract: A Market in Transition
One of the clearest signs of a maturing recovery? A shift in the type of work coming to market. This quarter, we’ve seen demand move away from permanent hiring and towards contract engagements.
That’s not a red flag, it’s often an early indicator that new projects are getting underway. Organisations are choosing the flexibility of contract resources so they can test scope and budget before committing to permanent headcount.
There’s another factor at play too. During the extended downturn, a meaningful number of experienced contractors with in-demand skills either left the profession or left New Zealand altogether for opportunities offshore. Demand has now rebounded faster than that talent pool has replenished.
The result? Skilled contractors who remain are in a considerably stronger negotiating position than they were even a year ago.
“We’ve definitely seen contractors in the market hanging out for longer contracts and higher rates. They know the market has changed.”
What does that mean in practice? Contractors aren’t taking the first offer anymore. With fewer experienced candidates to choose from and rising demand for their skills, they can afford to hold out for longer engagements and better rates. Organisations, in turn, are having to meet that expectation if they want to secure the right people.
Skills in Demand: The AI and Security Shift
Beyond the placement figures, Richard also points to a shift in the type of capability organisations are recruiting for. The 2026 market has leaned hard into AI, data engineering, cloud, and identity and access management (IAM). AI and data, in particular, stand out as the areas of biggest change.
Here’s what’s interesting: the nature of AI hiring itself has changed.
Twelve months ago, AI roles were led mostly by strategy and senior-level candidates. Organisations were still figuring out whether, and how, to use the technology. That’s shifted. Now there’s a much stronger focus on design and implementation, a natural next step as businesses move from exploring AI’s potential to building it into day-to-day operations.
“This would suggest that organisations have gone beyond exploring the possibilities of AI, where more focus is being put on AI implementation and security,” Richard explains.
He sees this as part of a broader push to modernise core technology platforms, work that needs skilled data engineers and cloud specialists to build the infrastructure AI depends on. And with that comes a sharper focus on security and identity management too.
That focus on security isn’t incidental. As organisations lean further into AI, they’re widening their attack surface: more integrations, more data moving between systems, more places for something to go wrong.
Feedback from our clients is that they’re feeling this on two fronts. Internally, there’s more to secure as AI touches more systems and data. Externally, offshore attackers are increasingly targeting organisations they see scaling up faster than their security can keep pace. That’s exactly why IAM has become such a priority, it’s the gatekeeper for who, and increasingly what, gets access as that footprint grows.
So, what should IT professionals take from this? Richard’s advice is simple: depth beats breadth. “Increasing deep understanding of particular platforms, domains, or emerging technology would increase value,” he says, “and also being able to demonstrate how you’ve applied that in the workplace” will set specialists apart from generalists.
Advice for Employers
The same principle applies on the employer side: be deliberate, not generic. Organisations that want to secure the best available talent need to know exactly what they’re looking for.
“Organisations that can clearly define what problems they’re trying to solve, have an efficient recruitment process, and offer candidates meaningful work will certainly get themselves ahead with the best talent in the market.”
In a market where skilled candidates increasingly have options – speed, clarity, and purpose in your hiring process aren’t nice-to-haves. They’re what wins you the best people.
The Election Factor: Breaking Convention
No quarterly update in an election year would be complete without a comment on politics, and this quarter has delivered a surprise.
Traditionally, New Zealand sees a slowdown in contract renewals around June and July. It happens almost every election cycle, public sector organisations get cautious ahead of a possible change in government. Not this time.
“We’ve seen a higher number of renewals on contracts in June than we’ve ever seen before any other election.”
Given how much of this quarter’s placement growth has come from the public sector, this is worth watching closely. And while it’s growth that’s off a lower starting point, it’s still a signal worth paying attention to as the election approaches (set for Saturday 7 November 2026).
Looking Ahead
Richard puts it plainly. “In short, we think 2026 has been a lot more positive than 2025, and it’s continuing to this day,” he says.
What This Means for You
So, what should you do with all this?
For IT Professionals:
- Contract opportunities are strengthening, especially in high-demand skills areas. A tighter pool of experienced contractors gives you more leverage to negotiate longer terms and better rates.
- Deep, demonstrable expertise in AI, data, cloud, or IAM will set you apart from generalist candidates, especially as demand shifts from strategy to hands-on implementation.
- Be ready to show how you’ve applied your skills in practical workplace contexts, not just what you know.
For Hiring Managers:
- Public sector recruitment is recovering strongly, though off a low base. Treat this as a positive signal, not a full return to pre-downturn activity levels.
- AI-related hiring has shifted from strategy to implementation, and that same shift is driving demand for security and identity management. Does your recruitment approach reflect both?
- Define the problem you’re solving, streamline your process, and lead with meaningful work to attract top talent in a tightening contractor market.
For Everyone
Despite a brief pause in April linked to global uncertainty, New Zealand’s IT sector recovery remains firmly on track. Public sector activity, in particular, has defied traditional election-year caution, and the shift towards contract work and AI implementation signals a market moving from recovery into sustained momentum.
We’ll be back with our next quarterly IT market update around the general election on 7 November 2026. In the meantime, whether you’re weighing up your next career move or working through a tricky hire, our team is always happy to talk through what these trends might mean for you.
