Increased Migration to Address Labour Shortages

10 May 2007

Increased Migration and Other Measures needed to Address Labour Shortages

Immediate measures are required to address ongoing labour shortages faced by businesses according to the Wellington Regional Chamber of Commerce.

The latest employment figures from Statistics New Zealand point to persistent tightness in the labour market as strong demand for labour continues. The data showed record number of jobs in the economy and a large increase in the numbers of people entering the workforce to fill those jobs.

“The data is consistent with the Chamber’s latest survey of business confidence which shows that employers are finding it harder to find staff. Not only skilled labour but less skilled also”, said Chamber CEO Charles Finny.

“In spite of falling business confidence and investment intentions, the survey showed employers still want to take on more people - the problem is they are just not out there.

“We welcome the increase in part-timers, women and older workers re-entering the workforce that is shown by today’s figures. We feel that further steps are needed to encourage and assist these people back into the workforce. It also means increased effort must go into workplace training.

“We need to acknowledge that there is not a never-ending supply of people outside the existing workforce to tap into. Immigration rules need to be adjusted urgently to allow increased migration to meet employer demand.

“We also need to focus more on growing productivity in the work place. We should be doing this anyway but the tight labour market conditions make this more important. Increased investment, particularly in the areas of infrastructure and technology, is a key to increasing productivity. Business will be looking to tax cuts in the upcoming budget as a motivation to increase investment,” Mr Finny concluded.

ENDS

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