Answer extracted from The Otago Opportunity podcast — listen to the full episode below.
December is exceptionally busy because clients want new hires to start in January and cannot complete onboarding within that month, making it ideal for candidates working their notice period. January is exceptionally quiet due to New Zealand's summer holiday period, when businesses and employees take a full month off, creating immediate cash flow pressure for recruitment firms paying staff holiday pay and managing GST and provisional tax payments.
In December, recruitment activity peaks as companies plan for the new year ahead. The underlying logic is straightforward: employers want employees in place by January 1st, but they know their teams will be unavailable for most of January during the summer holidays. This creates an urgent hiring window in December for roles that need to be filled before the year ends.
The timing also works well for candidates who are already employed elsewhere. Those working their notice period—typically two to four weeks—can give formal notice in December and have it align perfectly with January start dates. This natural alignment between employer needs and candidate availability makes December the prime recruitment season in New Zealand, as explained in this episode with Daniel Harms.
January presents an entirely different recruitment landscape. The entire month effectively shuts down for business hiring because both employees and employers are on holiday during New Zealand's summer season. This cultural and seasonal reality—deeply embedded in the country's work rhythm—means recruitment firms face a dramatic drop in job placements and candidate movement.
Beyond the absence of hiring, January creates acute financial strain for recruitment companies themselves. While staff are on paid leave and businesses are closed, recruitment firms still face fixed costs: employee holiday pay, quarterly GST payments, and provisional tax obligations all come due. This cash flow squeeze can be challenging for smaller firms, as discussed at length in Platinum Recruitment founder Daniel Harms' interview.
"It's not a baby anymore. It's a preteen, and you've got all the wonderful growing pains but you also have that excitement of seeing it grow and develop."
Daniel Harms — Founder and Director, Platinum Recruitment. Originally from London and Sydney, Harms relocated to Dunedin in 2011 and founded Platinum Recruitment in 2014 from a bedroom with no clients or candidates. The firm has since grown into a multi-location operation serving the entire New Zealand market, while Harms remains active in local governance and community initiatives including the Dunedin Fringe Arts Trust and the Dunedin Wildlife Hospital.
For those curious about how these seasonal dynamics play out across Dunedin's broader labour market, the full episode explores emerging trends in AI recruitment and how remote work has reshaped hiring patterns in New Zealand's provincial job markets.
Approximately 70 percent of jobs in Dunedin are tied to central government or local government spending, compared to a national average of around 60 percent. Only 30 percent of Dunedin's jobs are in the private business sector.
Dunedin runs about 50 percent lower than the national average for job numbers. The national unemployment average sits around 5 percent, while Dunedin's unemployment is approximately 2.5 percent.
Daniel Harms identified major shifts including COVID-19 enabling remote work across the country and a 14.3 percent upswing in Seek job ads mentioning AI as a key element of the role.