Confidence in the labour market is shrinking, according to new reports.

The Westpac-McDermott Miller index shows employment confidence has reached its lowest level since mid-Covid - in September 2020.

It fell in 4 out of 11 regions - including the biggest jobs market - Auckland.

Westpac senior economist, Michael Gordon, says businesses are advertising fewer jobs.

He explained some are just looking for more specialist roles and others are overstaffed after keeping workers through the downturn.

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