Unemployment Falling Fast
Reflecting an economy in expansion mode latest unemployment statistics must make very pleasant reading for a Government one month out from national elections.
The unemployment rate has fallen to its lowest level in 5 years and at 5.6% New Zealand now has the 9th lowest unemployment rate in the developed world. By comparison our Australian neighbours were surprised this week by a jump in their unemployment rate to 6.4%.
When unemployment hits 5% in New Zealand skills shortages generally become acute and extend beyond the highly skilled to the semi and unskilled.
Over 85,000 new fulltime jobs have been created across all sectors of the economy over the past year.
Hiring intentions continue to run at historically high levels. Skilled vacancies are 17% higher than a year ago and employers continue to report difficulties in filling those vacancies.
With net migration running at close to 40,000 people over the past year many of these vacancies are being filled by highly skilled and fluent English speaking migrants. Including you might be surprised to learn the 25,000 Australian citizens who migrate to New Zealand every year under our open border policy for citizens of one another’s countries.
As a consequence of this flow of Australians joining us, New Zealanders returning home from a contracting labour market in Australia and few New Zealanders heading across the Tasman, many migrants from other countries may continue to struggle to find the skilled jobs they need to secure their residence.
When asked how they intend to meet the growing skills shortages employers indicated:
- 39% increased salaries to attract local applicants
- 35% trained less qualified candidates
- 26% brought in contractors; and
- 23% recruited overseas
It is insightful how few consider migrants as part of the solution but explains why low unemployment does not always lead to securing employment more quickly.
In greatest demand were tradespeople, forestry, manufacturing, construction, IT and Telecommunications.
What always interests me is how few employers seek to recruit migrants as part of their mix but chase an every decreasing pool of local applicants.
I appreciate that employers prefer migrants to be in New Zealand, preferably with work visas (which you cannot get without the job), fluency in English, culturally compatible, a personality they identify with and obviously some demand for their skills set.
Only 51% of employers survey4ed believed that the staff they have possess all of the skills they need to adequately carry out their jobs.
Looking on the bright side, although the bias toward local applicants continues we are heartened by the number of employers and recruiters (even!!) who are now more willing than they have been in recent years to entertain migrant applicants.
One might imagine that the Government might begin to increase the numbers of migrants they let in without job offers but it is my view that they will not. Recent experience suggests that as the Government has demanded more skilled migrants find jobs first, they have. This will reinforce the governments view that with a tightening local labour market migrants should (in theory) be able to secure jobs more easily. And the politicians can defend their jobs first for New Zealanders mantra (as they should).
Our message remains one of caution optimism for our clients urging you to carefully research the frequency of jobs that you might be able to fill, accept that you’ll need to be in New Zealand for 2-4 months to secure employment, to persevere, remain positive and accept that you need to apply for many jobs to secure a small number of interviews, an even smaller number of short lists but ultimately it is very rare for our clients not to secure the employment they require to secure their residence visas.
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