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This section provides a summary of the current labour market context for skills demand. It is taken from the latest Department of Labour report on skills in the labour market ¹.

“The New Zealand economy is in full swing and pressure in the labour market remains intense. The September 2004 quarter unemployment rate was the lowest in the 18 year history of the Household Labour Force Survey, underemployment and long-term unemployment are very low and growth in average wages is at cyclical highs.

“It is not surprising then that all indicators of skill shortages are at historically high levels. Firms are now having more difficulty finding unskilled staff than at any time in the last 30 years and the net percentage reporting it harder to find skilled staff is up to 54% – just short of the previous high of 55% in the December 1994 quarter. Nearly a quarter of firms cite labour as the main constraint on their ability to increase output.

“Solid economic growth in the last five years has led to a large expansion in jobs and, up until now, that expansion has been absorbed by rising labour market participation rates, higher levels of net migration, and a large fall in unemployment. However, looking ahead, labour productivity growth will be the single most important factor in easing labour market pressures and lifting our economic growth rate.”

The report notes that the recent report of the Workplace Productivity Working Group “identified seven drivers of workplace productivity”, one of which is “investing in people and skills”.

The implication of the current labour market situation for tertiary education is likely to be a move away from demand for pre-employment education and training, particularly for lower-skilled jobs, to greater demand for employment-based education and training.

¹ Department of Labour, Skills in the Labour Market, December 2004. (↑)

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• Table of Contents

• The State of Play

• Cross Strategy Indicators

• Raise foundation skills

• Skills for our knowledge society

• Strengthen research and knowledge creation

• Te rautaki mātauranga Māori

• Pacific people’s development and success

• Capability and quality

• Technical and Data Definitions