New Zealand Tech Industry | Techspace Consulting Limited
New Zealand Tech Industry: Examining the Demand and Supply Mismatch

New Zealand Tech Industry: Examining the Demand and Supply Mismatch

Upskilling to Thrive in a Tech-Driven World

Immigration and Skills Shortages: New Zealand’s tech sector has long relied on immigration to fill skill gaps. However, low levels of investment in upskilling existing staff persist. Training and upskilling require both financial and time commitments for employers, but without them, employees face slow career progression, leading to higher turnover rates. Desire for career development and concerns about underutilized skills are top reasons tech employees consider job changes. In 2023, 59 percent of IT workers are pondering workplace transitions. Initiatives to upskill and reskill are emerging, but the landscape remains fragmented.

Education-to-Employment Gap: Bridging the gap from education to employment remains a challenge. To address this, the government should establish a wide range of entry-level digital roles and enhance the visibility of available support for entry-level positions. The decline in students studying math and technology subjects is concerning, resulting in fewer young people entering the workforce.

Learn more about the skills gap in the NZ Tech Digital Skills Report

Navigating the Specialisation Wave

Senior Specialist Shortage: The demand for senior specialists in emerging areas like artificial intelligence, cloud computing, and cybersecurity is on the rise, both internationally and locally. However, there’s a decrease in demand for less technical roles, partly due to the pandemic’s impact and increasing automation. This shift necessitates a focus on soft-skilled and trainable candidates to fill these roles.

Immigration, Sustainability, and the Quest for Balance

Immigration Dilemma: While immigration is vital for high-skills industries like tech, it’s currently at unsustainable levels, with over 50 percent of new tech roles filled through immigration. Striking a balance between importing skills and nurturing local talent is a pressing concern.

The Remote Work Revolution

Remote Work Preferences: The post-pandemic era has revolutionized the workplace, with remote work emerging as the top non-financial benefit preferred by tech workers. Companies offering remote options are more attractive to top talent. Despite these challenges, tech professionals remain confident in the job market, with 72 percent expecting job prospects to remain favourable.


New Zealand’s tech talent landscape is marked by the ongoing reliance on immigration, skills shortages, and a decline in students pursuing tech degrees. However, opportunities abound in specialisation, remote work, and a focus on soft-skill candidates. Techspace Consulting remains committed to navigating this dynamic terrain, bridging skills gaps, and fostering a diverse and talented tech workforce in Auckland, Wellington, and beyond.

Reach out to us today to discover how our expertise in IT recruitment can be the solution to your recruiting needs.

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