WRS Wellington Employment Workshop

Labour market from a business perspective

Jeremy Harding Wellington Employers’ Chamber of

Commerce

Employment Trends

Employment Growth

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2000 2002 2004 2006 2008 2010 2012

%

New Zealand Wellington Region

Employment Trends

Wellington Region Jobs

0

50000

100000

150000

200000

250000

300000 Central GovernmentAdministration

Professional, Scientific andTechnical Services

Health Care and SocialAssistance

Retail Trade

Education and Training

Accommodation and FoodServices

Manufacturing

Other

Employment Trends

Employment Growth 2008-2012 by Sector

-3000

-2000

-1000

0

1000

2000

3000

nu

mb

ers

of

job

s

Rest of Region

Wellington City

Public Service Cutbacks

Public Service Employees

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Jun-00

Jun-01

Jun-02

Jun-03

Jun-04

Jun-05

Jun-06

Jun-07

Jun-08

Jun-09

Jun-10

Jun-11

Jun-12

NZ

Public Service Cutbacks

Public Service Employees

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Jun-00

Jun-01

Jun-02

Jun-03

Jun-04

Jun-05

Jun-06

Jun-07

Jun-08

Jun-09

Jun-10

Jun-11

Jun-12

Wellington Rest of NZ

Labour shortages

• In spite of high unemployment rate employers are finding it hard to find labour.

• Not just skilled but to a lesser extent un- skilled too.

Labour shortages

• Our recent survey shows:– Labour shortages is the most common factor

holding business back– 35% of respondents say its harder to find

skilled staff than it was 12 months age.– 36% of Wellington Businesses say they

have skill gaps

Labour shortagesEase of finding labour

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13

Skilled/Specialist Unskilled

Easier

Harder

Labour shortages

• Where are the skill gaps?

• Survey shows:– IT– Construction related sectors

• Needs more investigation.

Employment Intentions

• Business Confidence is improving …

• but employment intentions are mixed

• 59.3% are planning on recruiting new staff in the next 6-12 months.

• 23.5% expect to have a larger payroll (greater number of staff) 60% same and 16.5% less.

Population

Wellington Region Population Forecasts

0

100000

200000

300000

400000

500000

60000019

96

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Wellington City

Rest of Region

Population

Population Projections (two-yearly revisions)

400000

420000

440000

460000

480000

500000

520000

540000

560000

2001 2006(3) 2011 2016 2021 2026 2031

Nov-02

Feb-05

Dec-07

Oct-10

Oct-12

PopulationNet Migration into Region

-1500

-1000

-500

0

500

1000

1500

2000

PopulationNet Migration into Region

-2000

-1500

-1000

-500

0

500

1000

1500

2000

Rest of Region

Wellington City

Wellington Region

Population

• “Wellington needs more people”

• We need a debate about population growth for Wellington

Skilled Population

Employment in Knowledge Intensive Industries

0

10

20

30

40

50

60

Wellin

gton

Auckla

nd NZ

Canter

bury

Otago

Waika

to

Northlan

d

Man

awatu-

Wair

arap

a

Bay o

f Plen

ty

East C

oast

Hawke

s Bay

Taran

aki

Nelson M

arlbor

ough

West

Coast

South

land

Sth C

ante

rbur

y

%

What Can We Do? 1. Attracting and Retaining Businesses and

growing business activity is key to growing local economy and job numbers

2. Increased internationalisation of Wellington business. Untapped potential in services sector (including international education and tourism)

3. Grow the Wellington population – Attract some of the migration which is staying in Auckland

Business Growth

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2000 2002 2004 2006 2008 2010 2012

%

New Zealand Wellington Region