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Growth in advertised vacancies easing

Growth in advertised vacancies easing

The rate of growth in job vacancies advertised in newspapers across New Zealand is slowing, according to the Department of Labour's Job Vacancy Monitor.

The Department's June analysis of one day's job vacancies in 25 papers around the country showed an increase of 8% over June 2004. While the number of job vacancies advertised in papers has been increasing for 18 consecutive months, June had the slowest rate of growth during that period.

Department of Labour Deputy Secretary Andrew Crisp said this was consistent with previous analysis which predicted a slowdown in job growth as the rate of economic growth eased.

``With unemployment expected to remain around 4%, the labour market will remain tight and skill shortages in some areas are expected to continue for the next two years,'' Mr Crisp said.

``However, a slower rate of economic expansion is expected to ease pressures in some parts of the labour market, and we are seeing some evidence of this.''

The Department's Skills in the Labour Market quarterly report published last month said that skill shortages are expected to remain over 2005 as companies are still hiring and staff turnover is high.

The slowdown in the growth of advertised vacancies was driven by:

* A decline in the number of vacancies for skilled occupations, particularly in the trades (-11%). There was a 27% decline in the number of vacancies for building trades; and

* Fewer vacancies for semi-skilled/elementary occupations: Vacancy growth of 12% was the lowest level recorded in the 18 months for which annual growth rates can be calculated. The number of job vacancies for clerks, for example, fell 2% year on year.

In some areas, the number of vacancies grew:

* Growth in highly skilled vacancies was higher than for the other skills categories, particularly for managers, accountants and health professionals; and

* The number of new vacancies in the IT sector reached a new high, averaging more than 1,400 per week, compared with about 640 early in 2003. There were 55% more vacancies measured in June 2005 compared with the same month in 2004.

The Department uses its Job Vacancy Monitor to keep informed about labour supply and demand trends.


Year-on-year regional increases in the index in June 2005 (compared with year-on-year increases in May 2005):

June 05/04 May 05/04

Auckland 14% 16% Bay of Plenty 28% 29%

Canterbury 3% 3%

Gisborne 1% -1%

Hawke's Bay 10% 12%

Manawatu-Wanganui 16% 17%

Marlborough 9% 5%

Nelson -5% -3%

Northland 32% 31%

Otago 5% 3%

Southland 9% 8%

Taranaki 30% 29%

Tasman/West Coast 18% 23%

Waikato 10% 12%

Wellington 18% 19%

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