New Zealand’s latest legal salary survey shows a market that appears stable on the surface but is tightening rapidly beneath it, with mid‑level lawyers and internationally mobile talent driving renewed competitive pressure across Aotearoa.
Market Stabilisation — and Renewed Hiring Momentum
While parts of the New Zealand legal market have shown signs of short‑term stabilisation, all indicators from our own anecdotal conversations with clients suggest demand is already building again, and we expect hiring activity to accelerate through 2026.
The latest salary survey broadly supports what we are seeing on the ground. Around 71% of firms expect to recruit in the coming year, with demand continuing to centre on mid‑level lawyers (3–6 years’ PQE). This remains the most constrained segment of the market, as firms prioritise individuals who can contribute immediately and support partner leverage.
Salary Growth and the Real “Market Rate”
From a remuneration perspective, the survey reports salary growth of approximately 3% over the past year, with firms budgeting closer to 5% increases in 2026. In practice, however, we are consistently seeing firms move beyond these benchmarks to secure the right talent.
Lawyers who can clearly differentiate themselves—particularly those with international experience, strong academic backgrounds, or the ability to contribute to client development—are commanding premiums above published salary bands. In many cases, the “true market rate” is being set through live hiring processes rather than survey data.
Shifts in Team Structure and Regional Competition
We are also seeing continued evolution in how firms structure their teams. The increasing reliance on legal executives, alongside growth in associate leverage, reflects a broader shift toward managing cost pressures while maintaining delivery capability—a trend we are seeing consistently across our client base.
Regionally, while Christchurch continues to show strong growth, we are also seeing increased competition for talent across all major centres, with firms becoming more open to hiring outside traditional geographic constraints.
Australia’s Growing Pull on NZ Talent
One of the most notable shifts, which is only partially reflected in the data, is the growing pull of Australia. While historically the UK has been the primary offshore destination, Australia is now overtaking this for many New Zealand‑qualified lawyers.
Importantly, this is no longer limited to junior lawyers undertaking an OE. We are increasingly seeing mid‑level and senior lawyers, often with families, making the move due to stronger remuneration, lifestyle alignment, and clearer long‑term pathways.
As a result, the risk profile for New Zealand firms is changing. It is no longer simply a question of volume leaving the market, but the potential loss of high‑calibre, experienced talent—often at the exact level firms find hardest to replace.
Retention, Flexibility and the New Baseline Expectations
With hiring activity beginning to lift again, firms are refocusing on retention and development. This aligns with what we are seeing across the market, with increased emphasis on mentoring, structured career progression, and employee engagement, particularly given ongoing turnover at the junior level.
Flexible working and wellbeing initiatives are now baseline expectations. However, many firms continue to balance this with a preference for in‑office collaboration, leading to more informal or hybrid flexibility models rather than fully remote arrangements.
