November 2022
Where have the people gone?
Latest Wage Increases
Hybrid Working
Changing Jobs
The Future - Looking Towards 2023
Where have the people gone?
According to Adrian Orr, the Reserve Bank Governor, one of the major impacts on inflation, is the tight labour market. He said that when he spoke to other central bank leaders, one of the main questions is "where have the people gone?"
"Labour has never been more scarce", Orr said.
In fact, MBIE released data in November 2022 showing that the labour market continues to remain strong and tight, with a record labour force participation rate of 71.7 per cent, an increase from the previous quarter.
The good news is that at Quality People Ltd, we are still putting people into jobs. Advertising widely and for a range of roles helps us to attract candidates. We also have great networks, a bi-product of operating in Gisborne for over 23 years.
Finding good candidates is tough, and we may not have the long lists of prospective job seekers, however, we are still able to provide the best person for the role and they still have the same stand out qualities that we have always looked for in our candidates.
To find the best candidates for your roles, employers need to be -
decisive about exactly what their business requires
modify their current recruitment process to be quick and efficient
once the best candidate is found, make an offer - good candidates slip through our fingers quickly
be prepared to offer flexibility in working hours and if possible, offer some work from home
understand the recent wage increases and offer an appropriate rate of pay
Latest Wage Increases
Latest wages increases provided by Statistics New Zealand and published by OECD Economic Outlook in November 2022 look like this -
"Firms are having to pay up to secure staff in a struggle to fill vacant positions,"Kiwibank Chief Economist, Jarrod Kerry says. NZ Herald 21/11/2022
Feelings of job security rose in the September 2022 quarter, as 52.8% of employed people believed there was almost no chance they would lose their job or business in the next 12 months. Scoop Independent Business News
MBIE states in their November 2022 Labour Market Fact Sheet that on average, hourly earnings during the September 2022 quarter grew annually by 7.4 per cent to $37.86 per hour.
Hybrid Working
As countries around the world settled back into life after lockdown, employees often decided that they enjoyed working from home, some questioned their current lifestyle choices and opted for career changes, moving out of the city or to a hybrid approach to work.
Hybrid work conditions, as set out in the NZ Public Service Commission guidelines are as follows -
Hybrid work is:
a type of flexible work and needs to be applied consistently with the flexible-by-default guidance
an organisation-wide approach to people working some of their time at home and some of their time in the office
able to be used for people working in a different city or region to their team’s main location. The work location could be the organisation’s premises, home, or another office location.
Many of our candidates would prefer hybrid working conditions or at least some flexibility in their working hours and days, with the opportunity for some work from home.
The jury is still out on hybrid working, although companies offering more flexible hours are tending to attract staff in a highly competitive employment market.
Changing Jobs
In this tight employment market, candidates are opting to explore a change in employment. This could mean less hours, a completely different role in a new industry, flexibility in hours, and hybrid working conditions.
The important message here is that prospective candidates
must either re-train to gain employment in another field with differing skills to those that they currently possess
may find an opportunity that will provide training in a role, but need to be mindful that the salary will reflect this
require excellent previous work references and history
be open to the requirements of the business that they have applied with - not all work can be flexible or provide work from home
However, this is an excellent time to be seeking a career change or a promotion opportunity
The Future - Looking Towards 2023
Independent economist Tony Alexander doesn't completely agree with the Reserve Bank of New Zealand's recession forecasts. "I still think, in New Zealand, we won't have a recession but, if we do, it'll be very shallow because we've got good support for the economy from the boom in inbound tourism, the relatively low Kiwi dollar, high job security as well," Alexander told Newshub late on Wednesday 23/11/2022.
The Treasury Budget Economic and Fiscal Update states that the labour market is forecast to remain tight in the near term, with the unemployment rate decreasing to 3.0% in 2022. In combination with increased salary expectations, this tightness is expected to catalyse nominal wage growth in 2023.
Quality People Ltd will continue to attract excellent candidates for our clients over 2023. We have broadened our advertising base, we keep up a good social media presence and continue to use our local network. We can certainly increase employers chances of finding that ideal candidate. During 2022, we have filled some very specific roles, some of which our client had been trying to recruit independently for over a year.
Keep us in mind when looking for staff or give us a call if you are considering a change in your working life.
Liz Robinson, Director
Quality People Ltd
(06) 8670076
0272851654