Why Hiring Unemployed Talent Is a Smart Move for NZ Employers
New Zealand’s labour market is evolving. With unemployment rising to 5.2% in June 2025 and over 158,000 Kiwis actively seeking work, employers and recruiters alike are rethinking what talent looks like, and where it comes from.
At Stellar, we are seeing a shift. While many candidates are available and eager to contribute, a common hiring trend leans toward those already employed. This isn’t about fault, it is about habit. In a fast-paced market, it is natural to rely on familiar benchmarks. But together, we have an opportunity to expand the lens and unlock untapped potential.
Here is the truth: unemployed does not mean unemployable. In fact, many job seekers are highly skilled, deeply motivated, and ready to fill workforce gaps immediately. They bring fresh perspectives, resilience, and a hunger to contribute, qualities that are often undervalued in traditional recruitment filters.
A 2016 study from the University of Canterbury found that while short-term unemployed candidates were slightly preferred over long-term unemployed ones, employed candidates were not significantly more favoured overall. This suggests that the bias may be more perception than reality. And in today’s tight labour market, such perceptions are costly.
Part of the hiring challenge stems from a growing reluctance among employed professionals to leave their current roles. Economic uncertainty, rising living costs, and a cautious business climate have made job security more valuable than ever. Many workers are choosing stability over opportunity, even if they are not fully satisfied in their current roles.
Additionally, the emotional and logistical toll of changing jobs can be significant. People are weighing the risks of moving against the benefits of staying, and in many cases, the status quo wins. This hesitancy creates a bottleneck in the talent pipeline, making it harder for employers to attract passive candidates.
This makes the case for hiring unemployed talent even stronger. These candidates are not only available but actively seeking change. They are ready to engage, contribute, and grow, often with fewer barriers to entry and faster onboarding timelines.
The pursuit of the “right fit” can unintentionally narrow the talent pool, favouring conformity over innovation. By embracing “cultural add” instead, employers open the door to fresh perspectives, diverse experiences, and greater adaptability which in turn enriches the workplace culture rather than simply replicating it.
The economic landscape reinforces this urgency. Skills shortages persist in healthcare, construction, and renewable energy. Yet, hiring remains cautious, with many businesses absorbing roles rather than creating new ones. This is a missed opportunity.
So, what can we do about it? We must look beyond employment status and focus on potential, values, and readiness. Challenge internal biases. Reassess hiring criteria. Consider how someone’s motivation to work, coupled with their availability and skills, could be the solution to your workforce challenges.
Let’s shift the conversation. From “Why aren’t they working?” to “How can we help them work with us?” Because in an environment where people want to work, and jobs need filling, the smartest move is to unlock the talent that is already knocking.
If you are ready to unlock potential and hire beyond the norm, contact Heath Brown today.