EMA’s Head of Advocacy and Strategy, Alan McDonald, shared that the current 3.4 percent unemployment, coupled with the ongoing wage rise, highlighted the pressure employers are under.
"When you link those numbers back to our recent Skills Shortage Survey, it shows we are still very short of people and skills in New Zealand," said McDonald.
McDonald explained that the skills and people shortages have significantly affected economic recovery, growth, and productivity. The EMA will assess the budget in the next few weeks to determine whether or not there are measures to support production growth.
Furthermore, McDonald explained that while there were signs of pressure coming off the job market, low unemployment and a mismatch in the skills being allowed in through the migration channel were still significant issues.
"Our recent Skills Shortage Survey showed that work readiness of those coming into the workplace for the first time is a major problem, and nearly 90 per cent of employers with vacancies were struggling to fill those vacancies.”
Migration numbers have increased rapidly. However, there is an imbalance in the system that weighs unevenly towards university and white-collar qualifications rather than technical and vocational skills.
This has led to members in the EMA who can’t take on apprentices as there aren’t enough skilled people to train them, or business is hindered from expanding as they don’t have enough capable people to meet any increase in orders.
Another concern revolves around forecasting continued unemployment, approximated to reach 5.5 per cent next year. Consequently, businesses will close, and people will lose jobs, which McDonald stated all want to avoid.
Encouragement to invest in new tech, machinery, and training is estimated to be the key to increasing productivity and lifting people entering or already in the workplace into higher-paying roles.
"More rapid depreciation of new investments in tech and machinery and more liberal definitions of what represents innovation would significantly enhance investment in productivity growth through digitisation and new tech."
Furthermore, McDonald emphasised that greater recognition and support for vocational education and training in the workplace is vital in boosting both productivity in the economy and skill levels in our workplaces. A continuation of support for schemes such as the Apprenticeship Boost would also be beneficial.
