SKILLS SHORTAGES

Earlier this year, over 80% of Winz work brokers surveyed said that engine service and repair workers (mainly mechanics and panel beaters) were in short supply. And nearly 80% of work brokers said there is a shortage of building and construction workers. Although demand for forestry workers dropped significantly last year, a third of work brokers still reported a shortage of workers in this field.

Non-European/Pakeha groups have also had much greater percentages of employment growth. Since 1991, Maori employment has increased 78%, Pacific people increased 114% and "other" ethnic minority groups increased 155%.

The Department of Labour's pre-Budget briefing said that the package should make a positive difference to those facing barriers to work such as sole parents and low-income earners. Still, the department counselled that, overall, the Budget was likely to have "relatively modest" employment impacts.

Source - New Zealand Herald 22 June 04 Budget ineffective in aim says Treasury" by Ruth Berry, political reporter.

Source - NZPA 16 June 2004 "MPs cross swords over budget's family assistance package".

The natural net increase in the number of working age people in New Zealand is a about 30,000 per year, which means the economy needs to find an additional 20,000-30,000 people to join the workforce over the next two years if it is to grow to its capacity. At the moment, net immigration looks to be heading towards a net gain of 15,000-20,000 people per year.

Some of the people who may swell the workforce will be those not leaving it. More people are delaying their retirement, or coming back from retirement, a trend that may increase the number of available workers. BERL also expects more mothers will rejoin the labour force and it estimates the "Working for Families" Budget package will encourage up to 10,000 people back into the workforce.

Source - The Dominion Post 23 June 2004 "Berl forecast 100,000 new jobs" by James Weir.

Some employers say they hesitate to employee refugees because of health and safety issues, and small employers say they don't always have the time to assist refugees to settle into the workplace. The report found that some Winz staff have "punitive attitudes" towards refugees, who characteristically find it difficult to find out about and accessing their ongoing benefit entitlements.

The report says other common problems that refugees face in getting a job are tht they often have limited knowledge of New Zealand workplace culture and work options and many have inadequate trade skills in the New Zealand context. Gender issues, attitudes to age and attitudes to time can all raise adaptation problems. Past experience of terror can sap a person's self-confidence and drain them of motivation or hope. Women are often especially disadvantaged and refugees arriving as teenagers are a high-risk group.

Manukau's unemployment rates are high and this is reflected in the high proportion of the population having low educational achievements. A quarter of the city's population have no qualifications, more than a third have no post-school qualifications and only 7% have degrees. If this low rate of educational achievement continues, not enough Manukau residents will be prepared to do what it takes to get the jobs of the future.

The report says many residents will need academic support and assistance to have a chance at being successful. The report: "Manukau residents cannot easily access university level education within the region because of traffic and transport difficulties. There are strongly held perceptions that universities do not adequately cater for Maori and Pasifika students."

Source - Eastern Courier, Auckland, 18 June 2004 "Education access falters in Manukau", by Claire Haynes.

But these initiatives appear unlikely to produce enough skilled and semi-skilled workers to make up the shortfall. John Wills, head of industry training organisation InfraTrain, says that bringing in people from the Pacific Islands is an option being discussed with the Immigration Service. Even though New Zealand has migrant quota obligations with to Pacific Island countries, it has been unable to fulfil them because immigrants must have a job before they are accepted, a criteria that is difficult to meet for people outside the country. Wills says the rules could be relaxed to allow people to come to New Zealand to train before taking up roading jobs.

An Immigration Service says it is too early to comment on the possibility of bringing in Pacific Island workers to help build roads. But confirms it is talking with industries to help find ways of better filling its quota of Pacific people migrating to New Zealand.

Source - The Dominion Post 26 June 2004 "No one to build Wellington's bypass" by Kim Ruscoe

The first study, commissioned by the Australian government, says the FTA would raise Australian incomes by $52.5 billion over the next 20 years. According to The Age, Melbourne, the study "stunningly" argues that most of the agreement's benefits to Australia would come from removing the need for most US investments in Australia to be approved by the Foreign Investment Review Board. But the newspaper says few Australians seem to believe that a "minor change" to investment rules could possibly result in such financial rewards.

The second report was commissioned for the Australian Manufacturing Workers Union — an outspoken opponent to the deal. It warns that the FTA would cost Australia 57,000 jobs and more than $52 billion over the next two decades. It argues "opportunity cost" of a FTA with the US will prevent Australia from developing a knowledge economy and focuses on the restrictions the FTA would impose on future Australian governments to operate an independent industry policy. Under the agreement, future governments would be forbidden to give preference to Australian firms in contracts, forbidden to require local content in contracts with US firms, and be unable to prevent up-and-coming Australian firms being taken over by US rivals.

The third, and most recent report, was prepared for an opposition-dominated Senate committee. It concludes that the FTA would be worth just $50 million a year to the Australian economy — less than 2% of what the government-commissioned study estimates.

The Age points out that if the Howard government loses the coming election, and John Kerry becomes the next US president, the free trade agreement might never become a reality.

Source - The Age, Melbourne, 14 June 2004 "Canberra dismisses FTA study", AAP; The Age, 22 June 2004 "What's the FTA worth to us?" by Tim Colebatch.