The architecture employment industry in New Zealand is navigating a period of challenge and cautious optimism. At our recent webinar, we explored the latest data, shared employer insights, and discussed what firms can do to stay competitive as the market evolves. Here’s a wrap-up of what we covered.
Current Workloads & Future Projects
Right now, most of the industry is centred around private residential, commercial, and interiors projects. Aged care and industrial sectors remain quiet. While activity is slower than in previous years, we’re seeing future growth signals in affordable housing, multi-unit developments, and high-end homes.
However, delays in council approvals continue to hold back project timelines. In fact, 78% of architecture leaders identified this as a major pain point. These delays are causing a ripple effect: holding up hiring decisions, increasing costs, and impacting staff retention.
Top Challenges for Architecture Firms
When we asked employers what’s keeping them up at night, three themes emerged:
- Winning new work (54%)
- Cashflow (30%)
- Staff retention (24%)
These issues are tightly connected. Project delays affect revenue, which makes it harder to offer pay rises or retain and attract top talent. Restructuring has also been a theme, with over a third of firms making redundancies in the past year. Some have gone through multiple rounds. It’s taken a toll on both staff morale and business leaders.
Hiring Sentiment & Talent Market Realities
Despite the uncertainty, 86% of employers report workloads are the same or quieter than last year. Only 13% are busier. While hiring intentions are picking up, most firms are still in replacement mode rather than expansion. Just 1% plan to reduce team size, suggesting that businesses are holding steady and waiting for confidence to return.
It’s also worth noting that many employers still believe job security is the number-one motivator for staff. But our research shows that flexibility, career growth, and culture are actually the top drivers. That disconnect could be costing firms their best candidates.
Technology & AI Adoption
Around half of architecture firms are exploring AI tools to boost efficiency. Early adoption includes:
- ChatGPT – for job ads, internal comms, and reports
- MidJourney / Firefly – for concept generation
AI is increasingly being used for site analysis, space planning, and admin automation. Most firms are still early in their journey, but those investing now will likely see a payoff in speed and capability down the track.
Regional Insights
Some standout trends from around the country:
Auckland: Still the highest job activity, but highly self-contained. 74% of applicants are local.
Waikato: Balanced talent flow, attracting interest for affordability and lifestyle.
Wellington & Christchurch: High numbers of non-local applicants. This could be a sign of talent gaps or city appeal.
For firms in smaller regions, strong EVP, hybrid options, and relocation support can make a big difference in attracting talent.
Migration & Mobility
In 2024, New Zealand saw a net gain of 30,600 migrants. At the same time, 47,000 Kiwis moved to Australia, many in the design sector. This talent drain is a major concern, especially for mid-career professionals.
Architects and technicians are not on the Green List, which means there is no fast-track residency available for them. Visa costs have nearly doubled, and delays are common. Firms hiring offshore talent need to plan early and consider offering visa support.
Salary Trends & Benefits
Salary growth has slowed significantly. The average pay increase dropped from 2.2% to just 0.6% in the last year. Only one in five firms plan to increase salaries in 2025.
In response, firms are leaning into non-salary benefits such as:
- Flexible work arrangements (like a 4-day week or flexible hours)
- Health insurance and birthday leave
- Training, CPD budgets, and paid registrations
- Bonuses and profit sharing
The key takeaway here is that culture, flexibility, and transparency are more important than ever.
Work-From-Home Realities
WFH participation has declined to 38%. Most firms now offer it on a case-by-case basis. Very few provide structured hybrid models. While flexibility is still valued by employees, 63% of architecture leaders believe remote work reduces productivity, especially for collaborative design. Some firms are instead offering flexible hours as a middle ground.
The Rise of Contracting
With so many projects on hold, many firms are turning to contractors to fill gaps. This offers flexibility and speed but can also bring challenges around integration and long-term loyalty. From a cost perspective, contracting can be up to 15% more expensive once you factor in KiwiSaver, leave entitlements, and training.
Firms should look to build agile models that combine both permanent and contract talent.
Looking Ahead
New Zealand’s employment rate tends to hover around 67 to 69 percent. This is structurally capped due to demographic factors, which limits how quickly the talent pool can grow even during a rebound. Architecture in particular faces a long talent pipeline. It takes years to train and license skilled professionals. That means firms need to invest now to be ready when activity lifts, particularly in housing and infrastructure.
Late 2025 into 2026 is expected to mark a market recovery. Those who prepare now, with a clear EVP, strong culture, and workforce strategy, will come out ahead.
If you’d like to hear more about the the state of architecture employment in NZ or would like to hear about the latest work opportunites, reach out to our team today!
