The economy is maintaining its strength with new orders, output and sales all at high levels, as are staffing levels and overtime. Meanwhile, firm's capacity use — how hard they are running their plant and machinery — is at the highest level since the survey began in 1961.

The worker scarcity is giving rise to concerns about wage inflation. NZIER suggests wages could accelerate to 4 or 5% over the next 18 to 24 months. This will put pressure on businesses to increase their prices which would encourage the Reserve Bank to further lift interest rates.

Source - New Zealand Herald 13 October 2004, "Double rate rise on way" by Brian Fallow.

The report: "Tackling health inequalities cannot be the task of the health system alone. Health inequalities are also powerfully affected by the broader pattern of public policy. Breaking cycles of disadvantage offers government one important lever for change. Interventions that get children and young people off the pathway of poor education and poor chances of employment are not only good in themselves but also diminish health risk. Equally important are policies that deal directly with the broader structure of inequality. Making sure that people not only have the work skills and access to childcare that enable them to take up employment, but also that there are enough jobs providing sufficient income is one important role for policy. Another is access to sufficient income support for those unable to work. Good quality, affordable housing, and life long opportunities for education are important for everyone."

MAYORAL ELECTIONS 2004 - AND THE MAYORS TASKFORCE FOR JOBS

Taskforce chairman, Garry Moore, was re-elected in Christchurch with a substantially increased majority. In Auckland City, incumbent John Banks (who was not a member of the Taskforce) was soundly beaten by new Mayor Dick Hubbard who says he now will bring Auckland City into the national initiative.

Four Taskforce core group mayors (from Dunedin, Kaipara, Hauraki and Rotorua) have retired from office, and long-serving Buller Mayor Pat O'Dea was defeated at the election (along with all the other West Coast mayors).

Garry Moore and Mayors Taskforce for Jobs executive officer Jan Francis say they are confident that most of the new mayors will participate in the Taskforce, although this will be confirmed with the 25 new mayors in coming months. At this stage they have had no indication that any of the participating cities or districts with new mayors intend to withdraw.

The Mayors Taskforce core group, which is self-selecting, intends to meet at Local Government NZ in Wellington on November 18 to review roles and reset the direction for the Taskforce over the next three years.

The programme is aimed at helping Year 10 (age 14) students develop career management skills through the use of individual learning and career plans. These plans will help students decide which subjects or courses to follow at school, and help them decide what to do in terms of further education or work after they leave school. The pilot will also target Year 11, 12 and 13 students who are at risk of not making successful transitions from school. Career Services will provide the support and resources for participating schools and special online resources will also be made available.

Mallard: "We need to make sure our teenagers are armed with the right information and skills to make good choices about where to next. We believe it's important both economically and socially for all people to have goals, and have the means to reach those goals in the workforce and in education and training."

Roading NZ's chief executive Chris Olsen: "The partnership is an important initiative to avert a potential skill shortage in the roading industry as a result of the government's extra $5 billion spending on transport over the next decade."

Roading joins the hospitality, retail, trucking and trades industries in partnering with Work and Income to provide unemployed people with entry level skills training.

Source - Press release, NZ Government 30 September 2004 "Job partnership benefits unemployed and roads industry".

Researcher Dr Anne-Marie Masgoret says the results showed Chinese migrants were clearly disadvantaged compared with New Zealanders. Masgoret: "It is hard to say if the reluctance is from the recruitment agencies or the employers they cater for. All we can determine is that the Chinese applicant was disadvantaged over the New Zealand one. We gave them the same experience so the only thing it can come down to is preference to New Zealanders." Masgoret says New Zealand might be disadvantaging itself by overlooking the value of Chinese applicants. There was a need for highly skilled employees but when they arrived they were not allowed to get their feet in the door.

Source - NZ Herald 30 September 2004 "Chinese? Sorry, there's no job" by Claire Trevett.

Compounding the ageing workforce issue is the stereotyping that is common among younger staff. Hudson's Ross Wright says that younger workers perceive older workers to be somewhat of a roadblock, to be tolerated not treasured. Wright: "They are not thinking about the knowledge that sits inside the heads of some of these older workers."

Wright says that in order to retain older workers longer, companies need to find a way to redesign their jobs in ways that retain value and are attractive for them. Work/life balance issues change as people age, and organisations can retain the skills and experience of their elders if they offer options like reduced hours or putting them in mentoring roles. Fewer than half the organisations in the Hudson survey are taking any formal steps to help older workers pass on their knowledge.

Source - Dominion Post 17 September 2004 "Getting the most from older workers" by Andrea Fox.

Source - New Zealand Herald, 6 October 2004, "Focus on fishermen's pay" NZPA; New Zealand Herald, 12 October 2004, "Crew shortage forces fish firms to eye foreign labour" NZPA.

Malaysian-owned Earnslaw One bought the forests from a Chinese company that went into receivership about this time last year. Forestry contractor Andrew Montgomery says this is the case of another foreign company coming in and slamming the East Coast after the Crown and Overseas Investment Commission had signed off on it.

Earnslaw One managing director Thomas Song says it is necessary to take a step back before taking a step forward. The company is looking for new markets for its products in China and, if successful, this could become good news for workers. The company intends to build a sawmill in the region, which would employ people as well as give reason to increase the harvest in future years.

Source - New Zealand Herald, 1 October 2004, "Anger builds as forestry jobs axed" by Peter Graham; New Zealand Herald, 4 October 2004, "Angry forestry contractors protest at looming job cuts" by Nicola Boyes; NZPA 5 October 2004, "Three logging crews to be laid off in Gisborne forestry rejig".

The Treasury working paper found that since 1951, growth in the government's health spending has been largely due to changes to coverage (the introduction of new technology and treatments, and redefined social priorities) and rising wages for health workers. It predicts that these cost and wage increases will continue to put greater strain on health spending than the ageing population.