Professions, diplomas, immediate work: Where are the best employment prospects?

The best career path is a perennial topic of conversation for New Zealanders – but what does the data tell us about what the best outcome for a person’s entire working life might be?

Salary increases

Stats NZ data showed that healthcare workers’ salaries grew the fastest between 2019 and 2024 – likely as a result of new collective pay agreements and pay equity agreements.

That increase was followed by pay increases for salespeople, whose salaries would likely increase as a result of big increases in the minimum wage, and for personal service workers – also potentially covered by equal pay agreements.

Next in line were road and rail drivers, whose salaries increased by over 20% during the period under review, followed by manufacturing plant workers.

Laborers also saw their wages increase by more than 20%. The construction industry saw a rise of more than 19%, compared to general office workers (17%), professionals (17%) and “managers” (12%).

“Over the last few years, we’ve seen the biggest growth in wages in trade,” Renney said.

“The reason for that is the construction boom – there was a shortage of skilled workers because we didn’t plan for hiring. Anyone who had skilled workers in the post-financial crisis period could have gotten a better salary elsewhere.”

Changes are coming

The problem for many professions is that work can be cyclical. The current weakness in the construction market has meant that these pay rises are unlikely to continue, and it may be harder to get a job.

Seek data showed that demand for workers in trade-heavy sectors fell more than in professional and public services last year. Job postings in construction fell 40%, compared with a 35.4% drop in professional services.

But there were swings within sectors. Banking fell 19%, but consulting fell 28%.

Mike Lough, of Cambridge Homes, said there were almost no job advertisements. “It’s just a fact that the construction industry is struggling at the moment.”

However, Renney said that when demand in construction does increase, it is less likely to be met by automated skills compared with other sectors, such as retail, where workers could be replaced by automated checkouts, for example.

“For many people working in the service industry, the risk is not just that demand will disappear, but that what they do will no longer be valued as much.”

He added that craftsmen’s pay sometimes depended on how many skilled workers were available at a given time.

“We had a structural shortage of plumbers and electricians and, as someone who recently paid a plumber, they still earn three times what I did after eight years of college. I wish them luck, it’s a matter of supply and demand.”

Training adds value

Renney said young people who follow the dollar and find jobs need to consider how sustainable that is. “A lot of people trade education for earning money, especially when they’re younger.”

This has been evident in the labor market in recent years, as employers have clamored for workers. People in the “golden window” of 15 to 21 have entered the workforce in droves.

“They could be the first to lose their jobs and lose the magical opportunity to get an education,” Renney said.

“My main concern is not that these people shouldn’t have jobs – that’s their business.

“They may be working when they otherwise could be studying or training, and that can have lifelong consequences for them.”

Data from Education Counts shows that higher qualifications tend to bring significant benefits in terms of higher income and earnings throughout your working life, especially compared to those who left school without pursuing further education.

In their latest update, education boards said that over the past decade, the median weekly earnings of adults with a tertiary education were about 40% higher than those whose highest qualification was a school education.

“If we only consider working adults, the hourly wages of people with a college education are about 35% higher than those with only a secondary education.

It was said that wages would generally rise with work experience, but higher levels of education seemed to mean that people’s incomes rose faster. Getting a degree gave European workers greater wage benefits than other groups.

“There were around 10% more of them for those with higher qualifications at level 4-6. Adults with no qualifications had on average around 20% less weekly income and 12% less hourly earnings than those with only school qualifications.”

Renney said there should be more opportunities for employment planning and career advice for people.

“We create these skills shortages and suddenly we have loads of people doing the job and then there’s no… If someone has some skills, we export them to Australia. It’s very much a case where we’re very dependent on the economy of the time and what’s happening in Australia.”

He added that it is difficult to point to any roles or sectors that will prove more resilient over time.

“Everybody’s career at every point in time has been both wiped out and suddenly resurrected. People who worked in banks had the safest jobs in the world until they stopped working… the only thing you can do to help yourself is make sure your skills are up to date.”

Renney said New Zealand did not have a good track record of helping people retrain mid-career.

Here’s a comparison of some of the roles.

Agriculture

Federated Farmers says wages have risen in recent years. Its 2024 Farm Wage Report showed the average farm worker wage rose from $7,480 to $71,412 between 2022 and 2024.

“For some of the more senior roles, the increases were significantly higher,” said Richard McIntyre, a Federated Farmers national board member and employment spokesman.

“For example, the average salary of a dairy herd manager has increased by 19% to $74,185. A sheep/meat farm manager is earning an average of 22% more than two years ago ($88,381), and the average income of a farm manager has increased by 28% to $101,264.”

Federated Farmers reported that the total average salary for a dairy farm assistant in 2024 was $61,994. An assistant dairy farm manager can earn just over $97,000, and a dairy farm operations manager can earn $112,497. A sheep and beef farm laborer can earn $62,858, and a sheep and beef farm manager can earn $105,740.

These are usually roles that are learned on the job, rather than on a specific training course. Primary ITO, which offers training for roles in agriculture, horticulture, beekeeping and seafood, as well as some food processing industries, found that people who trained on its courses earned money on the job and did not take out student loans.

Competition

According to careers.govt.nz, a lawyer can start at $62,000 and move up to about $130,000 a year in five years. That would require a law degree, which can cost about $30,000.

The Bar Association recently conducted a study of the costs of doing business which showed that law firms face significant staffing challenges in attracting and retaining suitably qualified and experienced staff.

The Hays Salary Study found that a mid-tier private law firm graduate typically earned $58,000.

According to careers.govt.nz, an accountant would start at around $70,000, rising to $165,000 with experience. Accounting usually requires a degree – a bachelor of accounting from Otago costs $22,000 – but there are sometimes on-the-job training options.

Hays said an Auckland financial controller at a company with a turnover of up to $100 million typically earns $155,000 a year.

A systems administrator, who typically requires a diploma or associate degree in computer science or information systems, would earn between $85,000 and $120,000 annually, according to the job site.

Transactions

According to careers.govt.nz, a carpenter can earn between $23 and $25 to start with and $29 to $41 per hour as they get more experience. A plumber can earn between $23 and $52 per hour, depending on experience level.

Electricians can start at $34 an hour, rising to $43 an hour after eight years of experience. In all cases, those who run their own businesses can earn more.

Many trades can be learned through an apprenticeship, but Unitec recommends completing the $6,900 Electrical Apprenticeship Certificate before beginning your apprenticeship as an electrician.

BCITO director Greg Durkin said construction apprentices would be able to receive wages while they learn.

“The cost of training to become a builder can vary… For BCITO, apprenticeship fees for a carpenter are $1,802 for the first year and $875 for each of the next two or three years.

“Additionally, BCITO is currently offering a fee support incentive where the first year is free if you register by the end of August 2024.

“We understand that the cost of living can be a challenge and we do our utmost to support apprentices in their first year. This support makes a difference given the current high rate of new apprentices entering the professions.”

He added that research from 2022 showed that the median salary of a graduate trainee under the age of 25 was $60,000 per year.

“That’s $20,000 more than the national median for that age group. For high school graduates who went straight to internships, by age 24, interns had collectively earned more than $150,000 more than their classmates who went to college.”

Work

Careers says retail managers earn $48,000 to $60,000 per year, and that job prospects are “average.” Bartenders earn $23 to $25 per hour, and bar managers can earn an average of $29. Motel managers can earn $60,000 to $80,000 per year, and hotel managers can earn up to $100,000.