Over half of organisations in New Zealand are facing skill shortages.
Statistics revealed by recruiting company Hays show almost 60 per cent of businesses are experiencing some sort of skill shortage.
The managing director of Hays New Zealand, Jason Walker, says labour markets in Auckland, Wellington and Christchurch are hardest hit.
"Employers are really looking to grow their businesses as the local economy picks up, that being the case we are going to experience further skill shortages down the line.''
Mr Walker says employers need to look at upskilling their existing employees to make up the short fall.
"Finding skill shortages across the New Zealand marketplace, particularly in the higher skilled areas and the higher qualification areas, over a third of employers are finding that IT specialists are in short supply.''
Mr Walker says employers need to flexible in order to adapt to the changing market.
Industry Training Federation CEO Mark Oldershaw says the education sector needs to look at the ways it tailors its programmes and qualifications to best meet industry needs.
"It's really looking with industry to identify those skill gaps and then working out a longer term strategy to make sure that we're in a position to provide employees with the right skills.''
A forum will be held in Wellington on Thursday to discuss developing workforces with the right skills, at the right time and in the right place.