As published in The New Zealand Herald, Saturday 2 May 2026
A few months ago, the mood was cautiously optimistic. Inflation was easing, interest rates were coming down, and after a long stretch of grinding through, there were signs that businesses and households were starting to lift their heads. Then the conflict in Iran escalated, and just like that, the narrative shifted, cost of living pressures returning, business confidence softening, the question of whether we’d fully turned the corner still open.
I’ll be honest: I’m a glass-half-full person by nature. We’ve built businesses through downturns, and I’ve learned that the story we tell ourselves about the economy matters almost as much as the economy itself. So I pay attention when I think my optimism might be getting ahead of the facts. And I pay equal attention when I think the pessimism around me is doing the same.
Right now, I think the pessimism is getting ahead of the facts.
I’ve been writing pieces over the past few months reflecting what I was seeing and feeling in Auckland, a mood shift, something subtle but real, a sense that the city was finding its feet again. The response surprised me. Message after message from people saying the same thing: this is great, we need more of this, we see it too, we feel it too. Business owners. Leaders. People who’d been quietly watching the same signals I had but hadn’t felt permission to say so out loud.
That response told me something important. We are not just passive observers of economic sentiment. We participate in creating it. When enough people who are privately feeling cautiously optimistic stay silent, because the dominant narrative is negative, because it feels naive to push back, because nobody wants to be the person who called it wrong — the silence itself becomes a force. It shapes decisions. It delays hiring. It postpones investment. It makes the downturn longer than it needs to be.
And frankly, we’re tired of it. Tired of being down about an environment that is genuinely challenging but is not, by any honest measure, the whole story. We live in one of the most beautiful countries in the world. We have clean air, safe streets, extraordinary landscapes, a culture that the world genuinely admires. Brand New Zealand, the thing that makes people want to come here, invest here, build here, remains as strong as it has ever been. A global headwind doesn’t change that. It doesn’t change who we are or what we have. And it shouldn’t change how we talk about ourselves.
The external environment is genuinely difficult, and New Zealand is not insulated from it. We are a small, open economy. Global shocks land here quickly and leave slowly. The oil price, the US dollar, the mood in Beijing, none of these are things we can control, and none of them are going away. I’m not dismissing any of that. But it is worth looking more carefully at what the data actually shows. Because underneath the headline noise, there are green shoots, real ones, in the places that matter most.
Job volumes have now risen for ten consecutive months, the first sustained uptick since Covid. Anna Mowbray, founder and CEO of job platform ZEIL and who tracks hiring patterns across thousands of New Zealand businesses, describes it as “a meaningful return to growth,” and notes that for many employers and job seekers who have been grinding through a long flat stretch, “that relief is being strongly felt.” Ten months is long enough to rule out seasonal noise, long enough to see through the distortions of a single industry or a single event. It is, by any reasonable measure, a signal that something structural has shifted.
Buried in the detail is something more telling: entry-level roles are up 31 percent year-on-year. These are the first positions to vanish in a downturn and reliably the last to return, because they require employers to believe not just in today but in the next twelve months. Entry-level hiring isn’t a reaction to current demand. It’s a bet on future demand. Employers who are genuinely uncertain don’t make that call. The fact that they are making it, consistently, at scale, across ten consecutive months, suggests the underlying confidence in the economy is more durable than the mood implies.
This matters beyond the labour market itself. Employment is the fastest route to household confidence. When people feel secure in their jobs, they spend. When entry-level roles open up, the people most affected by the downturn, younger workers, those re-entering the workforce, those who lost ground during Covid, start to get back in. The distributional effect of this kind of job growth is more significant than the headline number suggests. It reaches the parts of the economy that aggregate figures often miss, the households that don’t own investment properties, that don’t have buffers, that feel every turn of the cycle most acutely.
None of this means the risks aren’t real. Consumer spending hasn’t fully recovered. Household balance sheets in some segments remain stretched after the inflation and interest rate cycle of the past few years. The housing market is subdued in parts of the country. And business confidence surveys, which measure mood as much as fundamentals, have softened in response to global events. That softening is real, and it would be wrong to dismiss it.
But there is a difference between sentiment and structure. Sentiment moves fast, in both directions. Structure moves slowly. It reflects decisions made over months, investment in capacity, changes to hiring, commitments to the future. The structural signals in the New Zealand labour market right now are pointing in one direction, even as the sentiment signals wobble. And in my experience, structure wins eventually.
The history of New Zealand recovery bears this out. After the Global Financial Crisis, business confidence remained deeply negative for months after the actual trough of the downturn. The mood lagged the data by a significant margin. By the time sentiment had recovered, the recovery was already well underway. I think we may be in a similar moment now, where the narrative of uncertainty is running behind the reality of a labour market that has been quietly rebuilding for the better part of a year.
This is what a self-fulfilling prophecy looks like in reverse. The negative narrative feeds caution, which delays recovery, which sustains the negative narrative. But it works the other way too. When people who are genuinely seeing green shoots say so — clearly, publicly, with data behind them — it gives others permission to act on what they’re already feeling. The messages I received after those Auckland pieces weren’t people being talked into optimism. They were people recognising something they could already see but felt like one of the few saying out loud.
So what should we actually do with this?
Feed the good news. Not uncritically, not naively, but deliberately. The stories we tell about the economy shape behaviour as much as the underlying data does. If you’re a business owner or leader with a genuine story of recovery, hiring again, growing, feeling more confident, tell it. Loudly. The silence of the cautiously optimistic is one of the most underappreciated risks in a fragile recovery.
Hire ahead of the curve. The employers who will be best positioned when confidence fully returns are the ones who moved while others hesitated. Every sustained recovery rewards the early movers, those who built their teams, invested in capability, and were ready when demand came back. The data suggests that window is open right now.
Watch the leading indicators, not the sentiment surveys. Confidence surveys tell you how people feel today. Hiring data tells you what they’re actually doing about tomorrow. Those are different things, and right now they’re pointing in different directions. The hiring data deserves more weight than it’s currently getting.
And hold onto what doesn’t change. The external environment is noisy. It will stay noisy. But Brand New Zealand, the thing that draws people here, that makes businesses want to plant their flag here, that makes this place worth building in, is not a function of the oil price or the US Federal Reserve. It is something deeper and more durable. It is the reason people who leave keep coming back. It is the reason investors who have options keep choosing us. No global headwind changes that.
Ten consecutive months of job growth. Entry-level hiring up thirty-one percent. A city, a country, that is quietly, stubbornly, finding its way back.
I’m a glass-half-full person. Always have been. But right now, I don’t think that’s optimism talking. I think it’s the data.
