Rachael Tobeck, Manager – South Island Delivery at Younity, shares her Q1 2026 Canterbury IT market update
After a year that could only be described as “lumpy,” Canterbury’s IT sector is entering 2026 with renewed momentum and a cautiously optimistic outlook – and that is something to appreciate!
The good news is that hiring activity across the South Island has shifted noticeably since the start of 2026. This positive sentiment is backed up by the January 2026 Employment Report from Seek, which shows a 16.2 percent year-on-year rise in ICT jobs across New Zealand.
“2026 has kicked off a lot better, more momentum, more positivity,” says Rachael. “Activity picked up where we left off before Christmas, which was a lot stronger than 2024 and 2025.”
You can watch Rachael’s full market update video below.
Watch the Canterbury IT Market Update – Q1 2026
A Stronger Start, But Caution Remains
The shift in a more positive direction is genuinely encouraging, but it’s still a steady, measured recovery rather than a full rebound. Budgets are still tight across much of the South Island, but hiring is happening, particularly for the right skill sets and roles tied to business-critical projects.
The 2026 general election adds another layer of uncertainty for the IT job market this year. Public sector hiring traditionally slows as organisations enter election cycles, and some private sector clients are taking a similar “wait and see” approach on larger initiatives.
“In Canterbury, the impact is typically fairly mild compared to the rest of New Zealand,” Rachael observes. “Although we do see some initiatives take a little while to progress, and things put on pause for a while.”
Where the Demand Is
The strongest signal of recovery that we’re seeing is the growing demand for business analysts – an indicator that projects are moving from planning into delivery.
“It’s a really positive sign,” Rachael explains. “It means projects are picking up, and coming behind business analysts, you obviously have all the other roles to fill that project.”
Beyond business analysis, we’re seeing a steady demand across several areas in Canterbury:
- Data analysts, consultants, and data engineers (particularly those with Databricks experience)
- Automation testers
- Software developers
- A small but growing number of AI specialist roles
Permanent Roles Lead, Contracts Tighten
Permanent roles are leading the way among our Younity South Island client base right now. On the contracting side, things are a bit more cautious. We’re seeing many organisations and government agencies opting for shorter-term contracts (typically 3-6 months), then choosing to extend these on a case-by-case basis.
This more project-focused approach to contract hiring really reflects the broader market sentiment where businesses and organisations are still investing, but they’re doing it carefully and keeping a close eye on risk and flexibility.
The AI Question: Curiosity Over Fear
Across Canterbury, the conversation around AI is starting to shift. Yes, people are still worried about job security, but increasingly that concern is being balanced with a curiosity about how AI can support rather than replace, the work people are already doing.
“There’s definitely a concern, but there’s also a lot of curiosity,” Rachael says. “People are more focused on how they can work alongside it and make it work smarter.”
Most organisations in Canterbury are still in the early exploration phase. We’re seeing more demand for data automation and practical, real-world AI use cases. A number of companies are also actively hiring AI specialists, a trend we expect to continue throughout the year.
Staying Visible in a Recovering Market
The past two years have been tough for IT job seekers. While the market is improving, Rachel’s advice is clear: stay proactive and keep showing up.
“Keep networking. Use LinkedIn to be visible. Attend local events like Canterbury Tech or one of the many meetup groups here in Christchurch,” she says. “The candidates who stay proactive, they’re ahead of the game and they land roles.”
Canterbury Tech is a great example of a professional community that can make a real difference right now. Whether you’re growing your professional network, sharing your expertise through a blog, or lifting your company’s profile with a Member Spotlight, the Canterbury Tech community offers meaningful visibility within the local tech ecosystem. If you haven’t explored those opportunities yet, it’s worth a look.
What This Means for You
For IT professionals:
- Demand is on the rise, especially for business analysts, data specialists, and software developers.
- Employers genuinely value AI skills and upskilling in this space.
- Permanent opportunities are leading the way, but contract roles are still available for the right set of skills.
- Networking and getting involved in the tech community can really give you an edge.
For hiring managers:
- Quality candidates are in demand, so move quickly when you find the right person.
- Look at how AI tools can support your team rather than simply replacing headcount.
- Shorter contract terms can give you flexibility, but they may also make it harder to attract highly experienced talent.
- Factor election-year dynamics into your mid-year hiring plans.
For everyone:
Across Canterbury the downturn is starting to ease. Recovery is likely to be gradual and driven by projects, but the signals are clear. Budgets are loosening, projects are moving forward, and confidence is returning across the South Island’s IT community.
The ground is firming up.
About the Author: Rachael Tobeck
Manager, South Island Delivery – Younity
Rachael leads Younity’s South Island delivery team and specialises in Canterbury IT recruitment.
Email: [email protected] | LinkedIn: linkedin.com/in/rachaeltobeck-southislandtechrecruiter | Website: younity.co.nz (Company)
Want to talk about what the Canterbury IT market means for your plans?
Looking for your next IT role? Browse current Canterbury opportunities.
Need to hire? Register a vacancy with the Younity South Island team.
