Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Three steps to close New Zealand’s skills gap

Three steps to close New Zealand’s skills gap and reduce youth unemployment

Closer ties between business and government, fiscal incentives and input from business on university courses are three suggestions to close the skills gap and reduce youth unemployment, according to recruiting experts Hays.

With New Zealand’s economic growth exceeding three per cent, skills shortages have already led to significant wage pressure in high skill industries such as technology, residential construction and engineering, says Hays.

Skill shortages in these areas were highlighted in the Hays Global Skills Index, published in 2013, that showed New Zealand had the highest score possible (10) for the rate at which wages in high skill industries are rising compared to wages in low skill industries. This compared with 8.0 in Australia and 5.8 in the UK.

Add New Zealand’s relatively low score for education flexibility (3.8) and it is clear that New Zealand is not matching the skills of graduates with the skills needed in the economy.

“Due to the short supply of the right skills we are now seeing too many skilled jobs going unfilled,” said Jason Walker, Managing Director of Hays in New Zealand.

“This significantly impacts a company’s ability to grow and constrains New Zealand’s economic prospects at a time when we need to be encouraging a sustained recovery.

“As it’s an election year, we’re expecting to see the political parties put forward policies that address these important issues. This should be a high priority as both the long-term unemployment rate and youth unemployment rate remain high, despite some recent reductions.

“Longer-term, the Government needs to work with the private sector to rebalance the education system to produce greater numbers of the skilled individuals that our industries need,” says Jason.

According to Hays, business and government need to work together in developing schemes and programs to increase the supply of skilled workers. Governments must demonstrate real financial and political commitment to improving skills and businesses need to develop and implement tailored policies for their youngest staff.

Hays suggests the following to help the Government close the skills gap and reduce youth unemployment:

Develop closer ties with business to have clarity on the skills that are required.

Offer fiscal incentives to employers to enable them to employ and train staff in areas where there are skills shortages.

Facilitate forums and closer links between businesses and universities to establish appropriate courses that address the skills shortages. Universities could also be provided with incentives to offer these courses. In turn they can provide bursaries and reduced fees to students who undertake study in areas where there are ongoing and acute skills shortages.

Hays, the world’s leading recruiting experts in qualified, professional and skilled people.

- Ends -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news