The Squeeze Will Continue: The Demographics of Staffing
In recent years, New Zealand has faced a unique set of challenges in its labour market. Unemployment rates are at very low levels, driving wages up faster than inflation and creating significant hurdles for employers, especially when seeking skilled workers. This trend shows no signs of abating, as the country's demographics and projections for economic growth indicate continued tightness on the labour market.
Understanding the Current Landscape
As of March 2024, New Zealand's unemployment rate stands at 4.3%, which, while not at historic lows, is significantly below long-term averages, according to Stats NZ. This tight labour market has led to a period of above-trend wage growth, with wages increasing by over 4% since early 2023. The impact is particularly pronounced among skilled labour, as indicated by median income rising by 8.8% in the year to June 2022 and 7.1% in the year to June 2023, again sourced from Stats NZ.
Long-Term Employment Outlook
The Ministry of Business, Innovation and Employment (MBIE) projects a long-term increase in the workforce requirement, with an average annual growth of 39,400 (1.4%) until 2028. This growth is especially significant in skilled sectors, with a notable expected rise in demand for accountants and back-office roles, exceeding 2% annually. These projections suggest that the employment market for these roles will remain constrained for the foreseeable future.
Implications for Employers
A tight employment market affects employers in various ways beyond mere expense. The process of hiring becomes more protracted due to fewer candidates applying for each position, making it harder to find the perfect fit for a role. Moreover, current staff are more susceptible to being head-hunted, adding to the instability and challenges of maintaining a robust workforce.
Remote Worker as a Solution
A practical solution to this staffing squeeze is the inclusion of remote workers. By tapping into larger talent pools beyond local markets, New Zealand employers can find the skilled professionals they need. Remote workers offer greater flexibility and can significantly speed up hiring processes. Additionally, in an environment of rising costs, remote workers can be a cost-effective option, helping businesses remain competitive.
How Avant People Can Help
At Avant People, we specialize in helping businesses navigate the complexities of a tight labour market. Our expertise lies in crafting strategies that incorporate remote workers to enhance performance and productivity. Here's how we can assist:
Role Design: We begin by helping you design roles that are well-suited for remote work, ensuring clarity and efficiency.
Talent Acquisition: Our experience enables us to find the right person for your business, matching skills and cultural fit.
Tools and Processes: We advise on the best tools and processes to make a hybrid onshore-offshore team thrive, ensuring seamless collaboration and communication.
Administrative Support: From hiring to payroll, we handle all administrative aspects, allowing you to focus on your core business activities.
CONCLUSION
The staffing challenges for skilled workers in New Zealand are unlikely to ease in the foreseeable future. However, with the right strategy, businesses can not only cope but thrive. Avant People are here to help you design and implement a strategy that leverages remote workers, ensuring your business remains competitive and efficient in a tight labour market.
By embracing flexibility and innovative staffing solutions, New Zealand businesses can navigate the current labor market challenges and position themselves for long-term success.