What we are seeking to achieve over the next 3-5 years and why it’ important

The new immediate outcome of a more effective labour market has been created to recognise the potential for the Department to provide leadership on the labour market and its contribution to the economy. A more effective labour market will be achieved with improved workplace productivity and higher labour force participation.

Skill and labour shortages have a significant negative effect on business growth and unemployment and incur substantial economic and social costs. A well-functioning labour market provides people with opportunities to progress to higher-value and more-productive jobs, which contributes to better pay and improved job satisfaction for individuals, greater profits for firms, and stronger economic growth for New Zealand.

The labour market functions best when all participants have access to the best information. If the Department better explains or describes current and emerging market conditions, especially during times of rapid change, market participants, regulators, and other stakeholders can make more informed decisions, which will maximise individual and overall outcomes, including economic growth.

Supporting the provision of the workforce New Zealand needs is a primary function of the Department. The Department works in a variety of sectors with stakeholders who contribute to the skill development of workers, including supporting initiatives to help firms overcome barriers to enterprise and access the skills they need to grow and succeed. Where necessary, immigration is used to supplement the domestic workforce.

The Department also engages internationally to ensure New Zealand's interests in international labour and immigration issues are protected and promoted over the medium to longer term.

Improving the quality and performance of the labour market is critical to strengthening New Zealand’s future economic prospects. Changes to regulatory functions can provide greater flexibility and more choice for employers and employees.  Achieving good workplace health and safety practices, particularly in priority sectors and areas, improves workplace productivity, and mitigates the economic, social, and personal costs of work-related injuries, fatalities, and disease.  This cost is estimated at $16 billion each year, the majority of which is loss of life and loss of quality of life.

The immediate outcomes the Department seeks to achieve for a more effective labour market are:

• labour market decision-makers are better informed
• employers have greater access to the skills and workers they need
• employer–employee relationships are improved
• workplaces are healthier and safer.