NZ likely to face a skilled labour crisis

NZ likely to face a skilled labour crisis as global demand for highly skilled talent intensifies.

Tuesday 14 February 2017

In 2017 by all accounts business in New Zealand is booming. HSBC bank’s chief economist Paul Bloxham says our economy is currently "firing on all cylinders" and expects it to expand 3 percent in 2017, following 3.2 percent growth in 2016.

A recent survey by ANZ bank echoes this positivity, putting small business confidence at its highest level in almost two years, with 20 percent of businesses surveyed saying they were upbeat about the year ahead.

As positive as this business growth is, it exacerbates an increasing problem for New Zealand. Although our unemployment rate is low, the pool of workers with the talents businesses need is small. Speak to the HR departments of key areas of industry with skilled labour shortages, and they will tell you we don’t have enough people with the skills to fill the available positions. And of the skilled migrants coming into the country, there is still a major shortage in areas such as construction, engineering, technology, and healthcare.

Adding to the challenge for New Zealand companies, recent legislative changes make it harder for migrants to obtain a visa to work here. An applicant for a highly skilled migrant visa now needs 160 points - up an additional 20 points - to qualify. And there are more changes likely on the horizon.

So, what can New Zealand employers do?

"Business are having to recruit further afield than the traditional UK and South African markets to fill positions. We work mainly in the IT area of recruitment and we are now finding talent from new markets such as India, Eastern Europe and the Philippines to supply qualified candidates" Says senior recruitment specialist Rachelle Weingott RWA Technology People.

"We know that many businesses are unfamiliar with employing a skilled migrant and have concerns about the process and the legalities. But in order to get the best global talent, we think the only way forward is for companies to be prepared to recruit from the overseas talent pool - possibly even employing someone they won’t meet in person until they begin work. We have created a free online resource for employers to help them through the issues of employing candidates like this, and we predict the demand for this information will increase tenfold this year." Immigration law expert Aaron Martin.

This crisis reflects a worldwide shortage of workers with these skills. In effect, New Zealand must now compete with the rest of the world for the most highly skilled workers.

ENDS

© Scoop Media