New Monthly Job Monitor shows deepening of staff shortages

The first monthly Job Vacancy Monitor (JVM) is out and it reports an increase in advertised job vacancies. The Department of Labour's monthly analysis of job vacancy ads highlights that demand for workers is outstripping supply, especially at the lower end of the skill spectrum. In annual terms, newspaper vacancies are up 31% in April 2004 on the previous April, growth driven mainly by employers wanting low-skilled/elementary level staff.

As an example, vacancies in the category of plant and machine operators and assemblers, (for example, truck or forklift drivers, drainlayers, or sewing machinists) rose on annual terms by 44%. Restaurant staff continue to be in demand, with an annual increase of 47% in advertised vacancies.

The JVM reports that the growth in IT vacancies was 32% in the year to April 2004. The number of advertisements rose considerably in both Wellington (42%) and Auckland (35%) in the same period, but the number of advertisements for vacancies in Christchurch fell by 24%, leaving Christchurch with just 3% of the national share of job advertisements (Auckland has a 45% share, and Wellington a 50% share).

JVM is a monthly analysis and classification of advertised vacancies taken from selected editions of 14 major newspapers and on selected websites. It aims to provide statistical data about the demand and supply trends in the labour market for each occupation.

Read the first Job Vacancy Monitor on the Department's website. If you'd like to be notified by email when the monthly report is published, sign up on the Department's website.

Straight 2 Work in Plumbing

Work and Income has launched its fourth Job Partnership agreement with Industry. The aim? Increasing the supply of skilled plumbers, gasfitters and drainlayers around New Zealand.

For homeowners, that could mean fewer headaches on those freezing mornings when the pipes overflow. And for experienced tradespeople it means they will be able to get staff to meet expanding demands.

Work and Income has teamed up with Master Plumbers, Gasfitters and Drainlayers NZ Inc and the Tertiary Education Commission (TEC) to deliver the programme, called 'Straight 2 Work'. It builds on a successful Auckland pilot. Designed by industry, the programme includes assessment, pre-employment training, on-the-job training, post-placement support and career planning while delivering NZQA standards where appropriate.

"The industry is well aware of the nation-wide demand," says Stephen Cunningham, Work and Income Director Business Sector. "Employers in the industry are saying they have a skill and labour shortage and this new job placement scheme will go a long way to offering meaningful employment with career potential to those seeking work."

Some 115 job seekers will be placed in the plumbing industry this year in Northland, Auckland, Waikato, lower North Island and Christchurch, with a similar number planned for the next three years.

Plumbing & Roofing ITO Training Manager Doug Wilso, is very positive about the partnership. "We are looking forward to working very closely with Work and Income, TEC and intermediary training providers in this project. Our industries offer well paid career opportunities for the motivated people who will be identified and recruited from this partnership strategy."

'Straight 2 Work' is already operating in the hospitality, heavy transport and retail sectors.

More information on Job Partnerships with Industry.

Snapshot of skills situation

Skill shortages have overtaken lack of customers as the main worry for businesses, the latest report from the Department of Labour shows. The Skills in the Labour Market report says a lack of labour is now the main factor limiting expansion for almost one in four firms, a 30-year high.

The highest growth in job vacancies in the past year has been in unskilled and semi-skilled occupations. (See also New Monthly Job Monitor shows deepening of staff shortages) Employers are having the most difficulty finding unskilled staff, while most trades and some professions are still in severe shortage.

To get the full picture read Skills in the Labour Market

Partnerships pay off for Nelson, Marlborough employers

Partnerships and good planning were the key to a successful apple picking season in Nelson and will be key to the viticulture pruning season in Marlborough shortly.

Work and Income, the NZ Fruitgrowers Federation, Pipfruit Growers NZ Inc and industry employers met late last year and devised a strategy to anticipate and address the busy season ahead.

Despite growing labour shortages in many parts of the country, the Nelson region had enough pickers to meet the industry's needs.

Janine Dowding, acting Regional Commissioner, Work and Income, said Nelson's seasonal strategy showed that a cooperative approach could work.

"We have put a lot of effort into helping seasonal labour demands and it's been successful because of team work and the responsiveness by industry employers," she said.

The strategy included a promotional campaign, ranging from posters placed in backpackers hostels and information centres around New Zealand, to radio and newspaper advertising.

A seasonal employment coordinator was hired to make sure both labour suppliers and users were aware of staffing needs on a daily basis.

A 48-hour fast track process was negotiated with the NZ Immigration Service so foreigners here on visitor permits could quickly get permission to work the pipfruit season, when Work and Income clients were not enough to fill the seasonal labour gaps.

By the end of February 2004 more than 1300 New Zealanders and foreigners had visited the seasonal employment coordinator's office. Nearly 400 foreigners had used the fast track process to get orchard work.

Workplace productivity working group

A working group chaired by the Department of Labour will advise the government on working smarter to raise workplace productivity.

Labour Minister Paul Swain noted that economic growth improvement over the past 15 years was largely driven by stronger employment growth rather than improved productivity. "Current economic conditions, such as skill shortages and relatively high labour participation rates, suggest that improvements in productivity will be the key to lifting economic growth even further."

"In the past, productivity growth has mainly been achieved by cutting costs and shedding workers. However, a number of New Zealand firms are now achieving productivity gains with business practices that improve timeliness and quality, minimise costs and waste, and enable employee participation in setting and reviewing company goals."

The working group will look at the successful initiatives of local and international companies and advise the government on better ways to promote the issue and possible policy options.

More about the Workplace Productivity Working Group in the Minister of Labour's press release.

No stopping on-the-job training

More Kiwis are grabbing the chance to get up-skilled with Industry Training - 20,000 more people participated in 2003 than in the previous year. With 126,870 trainees and nearly 30,000 employers involved during 2003, Industry Training is well on target to reach its target of 150,000 Kiwis learning on-the-job in 2005.

"It's a win-win situation," said Helen Clark. "Employers know that highly skilled workers are the essential foundation to being a successful business in today's globalised economy. Workers know that with higher levels of skill come better pay and conditions."

Read Helen Clark's press release on industry training numbers.

Finding and keeping a modern workforce

With good employees as hard to find as hens' teeth in some occupations, it's time employers really make the most out of our increasingly diverse workforce.

As Helen Kennard from the Department of Labour says, "The skills businesses need may increasingly be presented in an unfamiliar package. To be competitive, employers need to acknowledge and accommodate different needs in the workplace and be innovative in seeking and retaining the skills necessary for their business success."

That's why the Department and the EEO Trust are collecting case studies of innovative business practice in recruiting and retaining staff, particularly in meeting the needs of a more diverse workforce.

Once the case studies are collected, a database will be freely available on the EEO Trust website for businesses to check out the experiences of others - good and bad.

Helen says the Department will also produce a publication to highlight selected case studies and key lessons.

If you'd like to receive this publication and other information on the project, please email info@dol.govt.nz with "Case studies publication" in the subject line.

The cultural mix adds another dimension to office life

A new newsletter from the Immigration Service brings you stories about how skilled migrants are making a great impact on New Zealand's workplaces and culture. Here's an excerpt from one story:

Office life at the Northern District Health Board Support Agency is far from dull, thanks in large part to the cultural mix of its staff.

General Manager Samantha Clifford immigrated from England nine years ago and currently manages the Agency's 31 staff - a mini-United Nations. "We've got all corners of Britain represented - English, Irish, Scottish, Welsh. I have a South African, an Iraqi doctor, two Chinese-born Chinese and a New Zealand-born Chinese, and two Samoans. It makes for a really dynamic working environment.

Sam says that immigrants help broaden people's horizons. "You're creating opportunity for discussion and debate about issues that would not even cross your consciousness, or people's experiences."

Abridged from a story in the first edition of Immigration Matters. This new publication celebrates the contribution people from other countries are making to New Zealand. If you'd like to be on the mailing list, please contact the editor

Job market should stay reasonably robust over the next two years

The Department of Labour expects labour market conditions to weaken during the next two years, but remain reasonably robust. Its latest Outlook says our job market has surpassed almost all expectations during the past three years, with one of the highest rates of job growth in the OECD, and one of the lowest unemployment rates.

The Department predicts, "Favourable job prospects will persist short-term thanks to solid economic growth and as evidenced by lofty job ads and hiring intentions. In 2005, lower job growth is predicted to temporarily push unemployment up to 5 percent of the labour force. Wage growth will remain strong though, lagging labour market changes."

Risk factors for economic growth include uncertainty around the exchange rate and net migration movements and their impact. For the job market outlook, the specific risks are the rate of labour force participation (the perecentage of the working age population that is in the labour force) and labour productivity.

For the full report, check the Department of Labour's website.

Info working for you

workINSIGHT is the Department of Labour's six-monthly publication on skills and work. If you advise people on work, training and education decisions, the information here can help you advise and explain the huge range of options available.

The latest workINSIGHT came out at the end of May, and focuses on Pathways to Work. Employment in New Zealand has grown strongly in the past decade - there are now approximately 460,000 more people in jobs. The challenge now is raising employment even further when employers nation-wide are finding it harder and harder to recruit skilled and unskilled staff.

The strongest job growth has recently been in groups such as older workers and ethnic minorities, who have traditionally been under-represented in the workplace. This is a good sign that paid work is opening up for many other people who may have found themselves shut out in the past. So what are the issues faced by older workers, people caring for children, those with low skills, and people with disabilities? We check out the issues and outline support available to help people who want to work.

If you'd like to join the mailing list email the editor Rob Heyes or check out workINSIGHT online

Questions about employment and training?

WorkSite / PaeMahi - www.worksite.govt.nz is your online shortcut to the latest information on work and skills in New Zealand. At WorkSite / PaeMahi you'll find useful links and information from government agencies and other organisations. It's the quick and easy way for you and your clients to find answers to questions about employment and training. To subscribe to the WorkSite / PaeMahi newsletter email info@worksite.govt.nz

About the Skills Action Plan

The Skills Action Plan is a whole-of-government strategy to lift the capacity of New Zealand's workforce so we can better meet the demands of the future. It's about:

• better matching people's skills to job opportunities,
• helping people make well-informed decisions about taking part in, or providing, education and training.

Other government agencies involved in the Skills Action Plan include: the Ministry of Social Development, the Tertiary Education Commission, Ministry of Economic Development, New Zealand Trade and Enterprise, Statistics New Zealand, Ministry of Agriculture and Forestry, Career Services and the Ministry of Education.

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