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DEMAND HIGH FOR SKILLED EMPLOYEES

By Lawrence Johnston

THE proportion of New Zealand firms that are having difficulty finding skilled staff, is now at its highest level for almost two years. That is one of the findings of the latest quarterly report published by the Department of Labour, which also predicts long-term high skill shortages.
The 'Skills in the Labour Market' report put the proportion of firms in the survey that are having difficulty, at 42 per cent.
The report which is for the June quarter also shows an increase in firms that are having difficulty finding unskilled labour. At 26 per cent, that is five per cent up on the March quarter.
Department of Labour Deputy Secretary for Work Directions, Monique Dawson said skill shortages were an inevitable consequence of strong economic growth.
In the June quarter, the working-age population grew by only 0.2 per cent, the lowest quarterly result for almost two years. This combined with falling net migration - down from 14,800 in the year to November 2006 to 10,100 in the year to June 2007 - had given employers a smaller pool of people from which to recruit.
The labour market had been showing this trend for some time and employers knew they needed to think outside the box when it came to recruiting, she said.
They needed to consider retraining and upskilling existing staff before looking for new people. But they also had to offer attractive terms of employment.
Skilled workers were in demand and had more choices. Offering high quality workplaces and working conditions were important ways to attract and retain these people.
Labour market conditions would remain tight. The unemployment rate had remained below four per cent for three years and fell to an equal record low of 3.6 per cent in the June 2007 quarter.
The Skills in the Labour Market report summarises information on skill shortages, mainly focused on the Quarterly Survey of Business Opinion from the Institute of Economic Research and the Department of Labour's Job Vacancy Monitoring Programme.