March Job Vacancy Numbers Show Skill Shortages

March Job Vacancy Numbers Show Skill Shortages
Thursday, 28 April 2005, 1:26 pm
Press Release: Department Of Labour Media Release
27 April 2005
March Job Vacancy Numbers Show Skill Shortages Continuing

Skill shortages continue to grow, the Department of Labour's latest report on advertised job vacancies shows.

The Job Vacancy Monitor showed that March was the 15th consecutive month in which there had been double-digit percentage growth in job advertisements, compared with the same month the previous year. Overall, job vacancies were 14 per cent higher than in the year to March 2004.

Department Deputy Secretary Andrew Crisp said the growth in advertised vacancies reflected the increasing difficulties employers experienced recruiting staff.

To compile the Job Vacancy Monitor, the Department analyses advertised job vacancies in 25 metropolitan and provincial newspapers on a specific day each month to provide a snapshot of the recruitment activity. This is part of a wider programme of gathering and assessing labour market information to enable the Department to assess trends and predict future change.

Mr Crisp said the monthly Job Vacancy Monitor provided a regular and timely insight into advertising trends across all occupational categories.

"This and other reports produced under our monitoring programme indicate that, to a large extent, the skill shortages are a product of New Zealand's strong economy. Economic growth is increasing demand for skilled labour."

The Department's reports inform the Government's strategies for alleviating skill shortages, including immigration and industry training policies. Non-governmental organisations also use Departmental reports to plan for the future.

Mr Crisp said job vacancy advertisement growth showed more employers who might usually fill vacancies by word-of-mouth had resorted to advertising, and were having to re-advertise. This was a consequence of the demand for skills outstripping supply, he said.

The largest increase in advertised vacancies (24 percent) was for highly skilled occupations including accountants and auditors, managers, teachers and health professionals.

Advertising for skilled occupations had increased six percent compared to March 2004 advertising. Skilled occupations include technicians, associate professionals and trade workers.

Mr Crisp said the slower increase in job advertisements for trades workers was the result of the steadying off in vacancies for building trades, which dominate this category.

"This probably reflects a levelling off of activity in the construction industry," he said.

Zero growth in building trade vacancies was somewhat compensated by 12 percent growth for metal trades.

Semi-skilled/elementary vacancies increased by 16%, with strong growth for plant/machine operators and assemblers, agriculture and fishery workers, service and sales workers, and elementary workers.

A separate Department initiative counts IT positions on a weekly basis on two websites. In March the number of positions increased by 55 percent compared with March 2004.

"The current labour market conditions are expected to prevail for some time, meaning skill shortages will continue. The unemployment rate is expected to edge lower in the first half of this year and stay under four percent over the next 18-24 months," Mr Crisp said.

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