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‘Not all roses’ despite growing labour market

The Wānaka App

Maddy Harker

31 May 2023, 5:06 PM

‘Not all roses’ despite growing labour marketStaff shortages have eased, but the cost of living is rising.

The local labour market is growing but workers are less satisfied than they were a year ago, a new report commissioned by Queenstown Lakes District Council (QLDC) shows.


Almost 2,500 additional jobs have been filled over the past year according to the latest quarterly labour market snapshot by economist Benje Patterson.



“Many employers are still short-staffed, but not nearly as badly as they were not so long ago – hospitality employment is now back to 85 percent of its pre-Covid level, compared to just 67 percent a year ago,” Benje said. 


Jobs growth has been characterised by a sharp lift in youth and female employment, he said.


Job numbers by under 25s rose by 29 percent (666 jobs) over the past year, a combination of school students finding part-time work, as well as an influx of working holidaymakers. 


The increased cost of living is increasing pressure on local families. 


Female employment, which grew by 12.6 percent over the past year, is likely to have been partly induced by the increased cost of living pushing households to seek additional income, Benje said.


“Households who purchased the median house one year ago in Queenstown-Lakes are now facing a more than $400 per week lift in mortgage repayments.”



Despite the lift in employment “not all is roses,” Benje said. Wages rises are slowing, the cost of living increasing, and employee sentiment around work dropping.


According to Stats NZ, the cost of living for the average New Zealand household increased 7.7 percent in the 12 months to March 2023 (following an 8.2 percent increase in the 12 months to December 2022), with household essentials like groceries and housing rising most.


In a recent submission to the annual plan, Community Networks manager Kate Murray said around 5,000 people presented for support “largely around financial struggles”.


The increased cost of living was “increasing pressure” on local families, she said. 



Workers were also feeling less positive about the work they were doing.


“In 2019 before the Covid-19 pandemic, 76 percent of Queenstown-Lakes workers agreed or strongly agreed that their work was fulfilling, while by 2022 this proportion had fallen to 68 percent of residents,” Benje said.


Many workers felt ‘pigeon-holed’ in what they are doing; fewer residents believe their skills are transferable to other jobs; and just 50 percent agree that their skills are being utilised to their full capacity, he said.


“Worker sentiment matters because employees, who are more satisfied, generally stay longer in their job and become advocates to others who are thinking about coming to work in Queenstown Lakes,” Benje said.


“Ultimately, anything employers can do to lift their employment practice is beneficial not just to their own workforce retention, but also to the reputation of Queenstown-Lakes as a desirable place to live and work”


The full labour market snapshot report is available on the QLDC website here.


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