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Home / Business / Economy / Employment

Career 14: Waking up to the recovery

Diana Clement
By Diana Clement
Your Money and careers writer for the NZ Herald·NZ Herald·
30 Jan, 2014 04:30 PM5 mins to read

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Although the economic indicators are good business owners have become timid since the GFC when it comes to hiring.

Although the economic indicators are good business owners have become timid since the GFC when it comes to hiring.

Will employers be putting their foot on the hiring accelerator in 2014? Yes, say all the indicators; however job seekers may have to wait till employers embrace the recovery.

In 2013 jobs weren't added at the pace of the recovery from the recession and something will have to change in the mind of employers before they do.

"My view is that the outlook should be positive," says John Lawson, principal of Lawson Williams Specialist Recruitment.

"But what we noticed in 2013 is that business owners have become a bit timid since the GFC and I am not quite sure when the indicators will result in them going: 'right, let's get into it'."

The Ministry of Business Innovation and Employment's (MBIE) short-term employment prospects report for the period up to 2016 predicts that employment will increase by 2.3% (52,000) in the 2014/15 year and 2.1% (49,500) between 2015 and 2016. That is a significant improvement from 0.5% in the year to March 2013 and 1.3% for the year ending March 2014. Increasing numbers of people retiring will aid the job market for younger people. At the same time the unemployment rate is expected to trend down slowly, falling to 6.0% in the first quarter of 2014 to 5.7% by Q1 2015. Employment growth will be strongest in Auckland and Canterbury.

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Where the jobs are

It doesn't require a PhD to work out where the job growth will be in 2014 assuming it happens. The three key sectors says Lawson are IT, construction, and engineering. These all feature prominently in the government's skills shortages lists and are in short
supply worldwide.

Randstad is expecting similar demands this year, but adds automotive technicians and electricians advertising, accounting, marketing and financial services to its list of sectors on the rise for employment.

Another area of employment growth is likely to be health, says Lawson. But unlike some other industries there's unlikely to be much wage growth in that sector because government through the district health boards and other agencies controls the job market too tightly.

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Construction has been the buzzword in employment growth every year since the Christchurch earthquakes. 2014 is likely to be no different. Auckland, thanks to net migration inflows, will have high demand for all types of construction workers this year, says Lawson. And Christchurch as a result of the rebuild will need more tradespeople.

Employers looking for engineers are going to have to fight hard to get their man or woman. One particularly difficult area to recruit for, says Lawson is process, and chemical engineers for the food, dairy and beverage sectors.

There are other smaller sectors where Lawson is predicting job growth. One is health and safety. In August the government announced the most significant reform of New Zealand's workplace health and safety system in 20 years. As a result, businesses will face higher expectations, stronger enforcement and greater penalties, meaning they will need the expertise to comply the new laws.

Fashion Personnel Limited director Donna Freeman says that roles in demand for fashion for 2014 include marketing, social media, PR and anything web related such as web management and online store management.

Other sectors on the rise according to Pohlen Partners include: human resources business partners who can demonstrate commercial outcomes from their strategies, and positions in customer services, project coordination, payroll, online marketing and e-commerce people.

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Some sectors have pockets of demand. Manufacturing, for example, has seen a contraction overall. Yet those companies that continue to manufacture onshore have high demand in 2014 for people with experience in lean or continuous improvement for manufacturing, says Lawson.

Sectors on the wane

Inevitably there will be sectors with fewer opportunities in 2014. They include, says Lawson, the media, forestry and in paper producing industries.

Randstad's director Paul Robinson, expects a wane this year in creative jobs such as acting, journalism, photography and film and stage directors.

Other industries that will have low levels of new employment uptake in 2014 include the fire service, pilots and air traffic controllers - due to little movement within the workforce.

The high dollar will continue to impact New Zealand's exporters such as manufacturing and agribusiness, says Kelly Services general manager commercial Wendy Hewson. "We are more likely to see jobless growth in these sectors, even though they are showing improved confidence," says Hewson.

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Also on the wane are personal and executive assistants as executives become more self-reliant, says Emma Gordon, business support consultant at Pohlen Partners.

Displaced workers whose sectors are in decline don't have a great outlook in 2014 as employers are expecting greater skills and experience for the same roles than in the past.

Workers looking to change careers after being downsized in a dying industry will find it harder, says Lawson. Employers are less likely to take on inexperienced employees transitioning from another industry.

Age and experience makes a big difference to employment prospects. For younger people some of the best opportunities will be in accounting, human resources, law, engineering, graphic and web designers, ICT, plumbing, dentistry, nursing, and psychology.

Contracting grows

"Will they, won't they?" may be the order of the day for permanent work. If employers hold back then the contract market is likely to benefit. Contracting is being driven by businesses adopting a contingent approach to upsizing, says Paul Greenaway, chief executive of Crackerjacks.

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Career Team's Alexis Siermans adds that there is "clear indication" that there will be increased usage of skilled temporary staff again in 2014.

Siermans says her clients are looking to expand long term contract hires in health and safety, marketing and social media, senior business administration, event and project management and IT technical and development roles.

Finance will be the area of lowest growth, says Greenaway, but that is mainly driven by significant growth of finance contracting in the last few years. "It is more settling of demand."

Sectors on the rise
• Engineering and construction
• Electricians
• IT
• Health
• HR
• Marketing

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