New Zealand needs more skilled expats on the South Island to maintain momentum in the economy.
Around half of businesses on the island are concerned that too few skilled workers are available – compared with 28% on the North Island.
Several large infrastructure projects are ready to start – including stepping up the massive redevelopment of Christchurch following the 2011 earthquake which devastated the nation’s second largest city and killed 185 people.
The fears about talent holding back progress were voiced to researchers preparing a Grant Thornton International Business Report.
Employers are worried that a shortage of skills may hold up next year’s projects and drag the South Island economy down.
Skills shortage
Simon Carey, of the firm’s New Zealand branch, explained that although employers and business owners are optimistic about future business trends, they are hoping a lack of skills will not hold them back.
“Building is expected to pick up in Auckland on the North Island and Christchurch in the south, and we have spoken to economists forecasting a 4% growth in the economy, providing everything stays on track.
“Australia’s economy is also turning the corner and this will lure skilled workers from New Zealand.”
Despite the worries about skills, around seven out of 10 employers on both New Zealand islands feel good about business prospects over the next year.
Expressed in numbers (South v North) businesses in the south expect –
- To generate more cash from increased prices (48% to 37%)
- To take on more workers (42% to 32%)
- Make an investment in plant and machinery (55% to 51%)
- Pay higher wages (85% to 82%)
Most wanted skills
“Most of the preparation has been completed, but the real building work in Christchurch is unlikely to start until next year. The south has also invested heavily in dairy and large irrigation projects. This combination of good fortune is likely to stoke the economy for a decade,” said Carey.
According to another recent jobs survey by global recruitment firm Hays, the top five skills need in New Zealand are:
- Software Developers
- Quantity Surveyors
- Qualified chartered accountants
- Civil Engineers
- Sales
“The national paradox for employers is that while unemployment is 6.2%, businesses are still having difficulties in filling certain professional posts,” said a spokesman for Hays. “They are roughly keeping pace with demand, but if the economy grows, the gap will widen, especially in construction.”
