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Posted on August 05 2022

New Zealand industries struggle due manpower shortages

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By  Editor
Updated January 18 2024

Highlights

  • Due to the pandemic effect, New Zealand's nursing and agricultural industries were more dependent on immigrant labor than any other.
  • Farm businesses, retirement villages, and hotels are rushing to find workers to fill in the manpower shortage by increasing wages.
  • The wages in the second quarter were raised to 3.4%, which is higher than last year and has speeded up compared to 14 years.

Fundamental shortage of people in New Zealand

There is a huge requirement for immigrants for the Nursing and agricultural industries since the post-pandemic. Although the government has simplified its immigration process, it has put limits on low-wage migrants. The government believed that this simplification would help in the transition of the country to a higher skills economy and higher wages.

For example, recently, a New Zealand video game developer PikPok, made a wise decision to find experienced workers for their company. It has established its studio in Medellin and Columbia by increasing its staff by recruiting skilled workers.

As the other industries like farms, retirement villages, and hotels have been struggling to find workers, hence they have been increasing the wages and making the banks fight inflation.

There is a slowness in revival after the pandemic due to a lack of people.

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Unemployment rate and shortages

By the end of the second quarter, the unemployment rate is just 3.3% and in the same quarter the wages were 3.4% higher which was a year earlier, but comparatively, the number is rising at a fast pace in the last 14 years.

The aged care sector has only 78% of the 5000 registered nurses, which makes aged care beds available unused throughout the country. Now there is a demand for rising wages for aged care nurses, which should be equivalent to nurses in public hospitals, as there are huge shortages for months now.

The Meant industry also has a shortage of 2000 workers as the sector now has only 23000 in number.

During peak times, all the carcasses couldn't be processed on time and the plants weren't able to run at capacity.

Though the borders were reopened, the New Zealanders preferred moving to other countries like Australia. As overseas employers are offering higher pay scales, many New Zealanders are preferring that kind of job.

As per the Economists, net immigration might not increase by next year as recruiting foreign workers providing them the visas, and moving to the country is a long process.

As per Dairy farmer Richard McIntyre, the delegate for Federated Farmers, the farmers had to work for longer hours as there is a huge shortage. Sometimes it is much harder to attract staff, which has been creating a problem for the other farmers. There is a crucial shortage of people to work on farms.

*Do you want to work for New Zealand? Speak to Y-Axis, the world’s no.1 overseas immigration consultant. Found this article interesting?

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Manpower shortage

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