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SKILLED WORKERS NEEDED

THE NEED for more skilled workers and tradesmen in New Zealand is even more desperate with the latest figures showing the country has the world's lowest jobless rate - at just 3.6 per cent.
This is the lowest rate among the OECD countries and New Zealand's lowest rate for nearly 20 years, since figures were first kept in 1986.
But New Zealand might have a tiger by the tail - with the low unemployment threatening to start a wages break-out, leading to higher inflation and higher interest rates.
Wages have gone up by 2.5 per cent in the past 12 months, but inflation has risen faster - at 2.7 per cent.
This increase in wages is the fastest in the last seven years and showed there was pressure on wages, according to the National Bank. "Skills shortages will ensure that wage pressures persist," the bank said. Average hourly earnings are now at $20.25.
But while New Zealand desperately needs skilled workers many potential migrants who have passed the points test and are ready to be accepted for emigration by the New Zealand Immigration Service have not returned their final forms, according to a spokesman at New Zealand House.
He pointed out that if they did not meet the deadline they would most probably have to start the emigration process all over again, with the loss of the jobs offered, many months of lost time and their fees. And there was no guarantee that they would be accepted for emigration if they did apply a second time.
Economists at the Bank of New Zealand said that the chance of an interest rate cut was close to zero, but the chance of interest rates rising was "increasing by the day."
It is generally expected that the Reserve Bank will most probably lift interest rates this month, with a further increase in about two months' time.
Economists also fear that trade unions will take industrial action to raise wages and this will lead to higher inflation, starting a vicious circle.