New Zealand’s Job Market Reality: Why ‘Getting Off the PlayStation’ Isn’t the Answer
For every job advertisement in New Zealand right now, there are nearly four people actively seeking work. This stark statistic, revealed by recent data, throws cold water on suggestions that unemployment simply requires a change in attitude – a sentiment recently echoed by Prime Minister Christopher Luxon. While the call to action might be well-intentioned, the reality is far more complex, pointing to systemic issues and a rapidly shifting economic landscape.
The Numbers Don’t Lie: A Deepening Imbalance
The data, based on those receiving Work Ready JobSeeker benefits (excluding those on benefits for health reasons), paints a concerning picture. While the ratio of unemployed to job ads has improved from a high of nine in 2020, it remains stubbornly at around five – double the rate seen in 2021 and 2022. Regional disparities are particularly acute. Hawke’s Bay, despite being highlighted by the Prime Minister as an area of opportunity, faces a ratio of 7359 jobseekers for just 568 jobs on Seek. Kawerau fares even worse, with a staggering 228 jobseekers per advertised position. Queenstown-Lakes is a rare exception, showing a relatively balanced market.
Beyond the Headlines: The Underutilised Workforce
Experts warn that official unemployment figures only tell part of the story. Craig Renney, policy director at the Council of Trade Unions, points to the approximately 400,000 New Zealanders who are “underutilised” – meaning they want to work more hours than they currently are able to. “We’re seeing more and more people want more work and can’t get it,” Renney explains. This underemployment, coupled with ongoing layoffs in manufacturing and other sectors, exacerbates the pressure on the job market. Recent plant closures are a visible sign of this shedding of work, particularly impacting the North Island.
The Impact of Public Sector Cuts and Shifting Industries
Professor Matthew Roskruge of Massey University highlights the impact of recent public service cuts and the decline of manufacturing. These factors are disproportionately affecting regional economies, leaving job seekers with limited options. He cautions that policies focused on simply removing benefits will be ineffective without a corresponding increase in job availability. “If we increase supply [of workers], they have got to have somewhere to go,” he states.
A Generational Challenge: Young People Bear the Brunt
The downturn is hitting young people particularly hard. The number of unemployed 15-19 year olds has risen by 10,000 in the past two years, reaching 37,200. Shamubeel Eaqub, chief economist at Simplicity, emphasizes that those lacking experience are consistently “at the back of the queue.” This creates a vicious cycle, where young people struggle to gain initial employment, potentially impacting their long-term career prospects. Eaqub warns that missing out on early career opportunities can have lasting consequences, as a new cohort of job seekers emerges with each economic recovery.
The Rise of Precarious Work
Adding to the challenge, many advertised positions are temporary or commission-based, offering little in the way of job security. This trend contributes to the growing sense of precarity in the New Zealand workforce. The quality of jobs available is as important as the quantity, and a proliferation of insecure roles does little to address the underlying issues.
Rethinking the Solution: Investing in Hiring, Not Just Penalising Benefits
Professor Jarrod Haar of Massey University suggests a shift in approach. Rather than focusing on reducing benefits, he advocates for incentivizing businesses to hire young people. “The reality is there’s just no jobs…there’ll be hundreds of young people wanting them,” he explains. This echoes calls for targeted investment in skills development and job creation programs, particularly in regions hardest hit by economic changes.
Even within sectors often touted as having labor shortages, the picture isn’t always clear. Paul Paynter, CEO of Yummy Fruit Company, notes that the horticulture industry isn’t currently experiencing widespread staffing issues. This highlights the importance of nuanced analysis and avoiding broad generalizations about labor market needs.
The current situation demands a more sophisticated response than simply urging people to “get off the couch.” Addressing the imbalance between job seekers and available positions requires a comprehensive strategy that includes investment in regional economies, support for industries in transition, and a commitment to creating quality, secure employment opportunities for all New Zealanders. What are your predictions for the future of the New Zealand job market? Share your thoughts in the comments below!
