New Zealanders Face Growing Underemployment Crisis

Okay, here’s a breakdown of the key data from the provided text, focusing on the themes of underemployment and changing work patterns. I’ll organize it into concise points, suitable for summarizing or using as the basis for further analysis.

Key Themes & Information:

Rising Underemployment: The number of underemployed people (part-time workers wanting full-time work but unable to find it) has increased significantly – a 26% rise in the past two years, now exceeding 127,000 people.Over a fifth of part-time workers are in this situation.
Difficulty Finding Full-Time Work: Manny people who want full-time work are struggling to find it, leading them to except part-time positions just to maintain income. Olivia Duncan applied for nearly 100 full-time roles before expanding her search to part-time work.High applicant numbers for each job are a barrier.
Accepting “Any Job”: Individuals are willing to take any available work,even if it’s not their ideal career path,due to financial necessity.
Shift Towards Patchwork Careers: The article highlights a growing trend of people piecing together income from multiple part-time jobs or “side hustles.” This is driven by both necessity (underemployment) and choice (seeking more fulfilling work).
Burnout & Career Change: Some individuals are choosing non-linear career paths, leaving traditional employment due to burnout (like amy Wang, who left IT for music). They are actively creating their own opportunities, even if it means more instability.
Economic Factors & Forecast: The Ministry of Business and Employment forecasts that unemployment will begin to decrease later in the year. They explain that companies typically reduce hours before laying off staff during economic downturns, and increase hours before hiring new staff during recovery. This explains the current underemployment situation.
* Hours Before Hiring: The current trend is employers increasing hours of existing employees before hiring new ones, contributing to the underemployment issue.

In essence,the article paints a picture of a changing labor market where traditional full-time employment is becoming harder to secure,leading to increased underemployment and a rise in people pursuing more flexible,but perhaps less stable,career arrangements.

What policy changes could effectively address the skills mismatch contributing to underemployment in New Zealand?

What is Underemployment & Why is it Rising?

Underemployment in New Zealand isn’t simply about unemployment figures.It’s a more nuanced issue affecting a growing number of Kiwis. It describes individuals who are working less than they want to, or in jobs that don’t fully utilize their skills and qualifications. This can manifest in several ways:

Part-time workers wanting full-time roles: A critically important portion of underemployed individuals are actively seeking more hours.

Overqualified for current position: Professionals holding degrees or specialized training working in roles that require minimal qualifications. This represents a significant waste of human capital.

Skills mismatch: Individuals possessing skills not currently in demand, or working in industries experiencing downturns.

precarious employment: Rise in zero-hour contracts and casual work, offering limited job security and predictable income.

Recent data indicates a steady increase in underemployment, notably post-pandemic. factors contributing to this include:

Economic slowdown: While New Zealand has avoided a major recession,economic growth has slowed,impacting job creation.

Industry Shifts: Changes in industries like retail and tourism, coupled with the growth of automation, are reshaping the job market.

Immigration Policies: Fluctuations in immigration levels impact the availability of skilled labor and overall demand.

Cost of Living: The high cost of living in New Zealand necessitates many individuals taking on multiple part-time jobs, contributing to underemployment statistics.

The Impact of Underemployment on Individuals & the Economy

The consequences of underemployment extend far beyond individual financial strain.

financial hardship: Reduced income leads to difficulty meeting essential expenses, increasing debt and financial stress.

mental Health Concerns: Job dissatisfaction, feelings of inadequacy, and financial worries contribute to increased rates of anxiety and depression.

Skill Erosion: Remaining in underutilised roles for extended periods can lead to a decline in skills and reduced employability.

Reduced Productivity: A disengaged and underutilized workforce translates to lower overall economic productivity.

Brain Drain: Highly skilled individuals may seek opportunities overseas where their talents are better valued, exacerbating skills shortages within New Zealand.

Impact on Innovation: A workforce not fully engaged in challenging and fulfilling roles stifles innovation and economic growth.

Sectors Most Affected by Underemployment

While underemployment impacts various sectors,some are experiencing it more acutely:

Hospitality & Tourism: Post-pandemic recovery has been uneven,leaving many workers in part-time or casual roles with limited hours.

Retail: The shift towards online shopping has led to job losses and reduced hours in customary retail settings.

Creative Industries: Freelance and contract work are common in these sectors, often leading to income instability and underemployment.

Education: Increased student numbers haven’t always translated into proportionate increases in full-time teaching positions.

Healthcare: While demand for healthcare professionals is high, funding constraints and bureaucratic hurdles can lead to understaffing and underemployment.

Government & Industry Responses to the Crisis

Several initiatives are underway to address the growing underemployment crisis:

Skills Advancement programs: The government is investing in programs aimed at upskilling and reskilling the workforce, focusing on areas with high demand.these include apprenticeships, vocational training, and online learning platforms.

Job Search Assistance: Services like Work and Income New Zealand provide job search support, career counseling, and financial assistance to those seeking employment.

Industry Collaboration: Partnerships between government, industry, and educational institutions are being forged to identify skills gaps and develop targeted training programs.

Fair Pay Agreements: The introduction of Fair Pay Agreements aims to improve wages and working conditions, potentially reducing the need for individuals to take on multiple part-time jobs.

Support for Small Businesses: Small businesses are a major source of employment in New Zealand. Government initiatives aimed at supporting their growth can create more full-time job opportunities.

Practical Tips for Navigating Underemployment

If you’re currently underemployed, here are some steps you can take:

1. Upskill/Reskill: Identify in-demand skills and invest in training to enhance your employability. Online courses, workshops, and industry certifications can be valuable.
2. Network: Attend industry events, connect with professionals on LinkedIn, and leverage your network to uncover hidden job opportunities.
3. Tailor Your Resume: Highlight skills and experience relevant to the roles you’re targeting. Focus on achievements and quantifiable results.
4. Consider freelancing/Contract Work: While not a long-term solution, freelancing can provide additional income and opportunities to utilize your skills.
5. Seek Career Counseling: A career counselor can provide personalized guidance and support in navigating the job market.
6. Explore Government Assistance: Investigate available financial support and training programs offered by Work and Income New Zealand.

Case study: The Impact on Recent Graduates

A 2024 report by Universities New Zealand highlighted the challenges faced by recent graduates entering the workforce. The study found that a significant percentage of graduates were employed in roles that didn’t require a degree, leading to