Average Weekly Hours Worked

IBISWorld anticipates the average weekly hours worked to inch downwards by 0.3% in 2024-25 to 33.9 hours per employed person. This trend is consistent with Stats NZ data, which shows that in the June 2024 quarter, full-time equivalent (FTE) employees worked an average of 38.76 hours per week, a decrease of 1.2% from the previous quarter. This reduction in hours is notably part of a broader trend where total actual hours worked also decreased, falling to 98.2 million hours. The decline can be attributed to several factors, including seasonal variations and shifts in employment patterns.

The decrease in average weekly hours may also indicate underlying challenges within the labour market. Employment figures saw a modest gain of 12,000 jobs, yet Stats NZ also reported an increase in underemployment, suggesting that many individuals are available and willing to work more hours than they currently do. Furthermore, as companies navigate economic uncertainty, some may implement reduced working hours or shift towards more flexible employment models to manage costs—a response not uncommon in fluctuating markets. As employers adapt to changing economic conditions like compressed workweeks and the four-day workweek, these factors could contribute to a sustained decline in average weekly hours worked, highlighting the importance of monitoring both employment levels and the actual workloads of employees in assessing the overall labour market situation. Moreover, there were reports that companies like Perpetual Guardian and Unilever NZ have initiated these progressive work schemes to enhance employee satisfaction and retention, acknowledging that a happier workforce can lead to increased productivity in the long term. These factors have collectively contributed to the average weekly hours worked, highlighting a significant transformation in New Zealand's employment landscape. Overall, IBISWorld forecasts the average weekly hours worked to minimally rise at a compound annual rate of 0.3% over the five years through 2024-25.