Worker shortage: Whanganui employers struggle to fill jobs as unemployment drops

As unemployment falls Whanganui businesses are finding it harder to hire workers. Photo / 123RF

As unemployment falls to below pre-Covid levels some Whanganui businesses are having increasing trouble finding the staff they need.

But wages for locals are growing faster than the national average.

In the three months to June 30, the national unemployment rate fell to 4 per cent from 4.6 per cent at the end of March.

In the Whanganui district there were 2565 people on the Jobseeker benefit in June.

But Whanganui, labour hire and recruitment businesses are struggling to find the staff some employers need.

On Call Central Limited provides casual labour. Its blue-collar workers are out on building sites, in light and heavy manufacturing, warehousing and holding Stop Go signs.

On Call Central general manager Craig McClelland said employers were so short of staff that he could get any person who showed keenness into a job the next day.

The current labour market favours workers rather than employers, he said.

"The employees now basically make the rules. We have to try and work around that the best way we can."

He doesn't predict any improvement in the situation, and said some employers have increased wages in order to keep staff.

AWF recruits staff to both blue- and white-collar jobs. Business manager Tina Rush said the blue-collar jobs were the hardest to fill.

That's especially so in Whanganui, which could be due to our older population.

The lack of staff has been a long-term issue, she said, and was getting worse. Employers can better their chances of getting and keeping staff by providing a good work culture and offering flexible hours.

Some are considering employing entry-level staff and paying them more, plus offering training towards better-paid work.

Outsourced Personnel, a boutique recruitment agency, is also having trouble supplying staff - and especially at the highest levels, principal Louise Bird said.

"It's busy. There's plenty on. My biggest skill shortage at the moment is a senior management accountant. I can't source anyone, locally or nationally."

There are jobs available but it's becoming harder to find people with specialised skills to fill them, she said.

Graeme Musson and Craig McClelland from On Call Labour.

When Bird does find a suitable person from out of town, it's hard to find a house for them to rent or buy as they relocate.

Whanganui & Partners chief executive Hannah Middleton agrees.

"With housing and rental stocks low, attracting workers remains challenging despite good affordability figures and the excellent lifestyle people can have in Whanganui," she said.

Whanganui average incomes grew 3.7 per cent in 2020, compared with national growth of 3.6 per cent.

Middleton said Whanganui & Partners wanted to improve the district's labour capability through education and training, and it encouraged businesses to plan ahead for their labour needs.

The Ministry of Social Development works to put people into jobs, and Taranaki, King Country and Whanganui Regional Commissioner Gloria Campbell said while there was strong demand there was also a pool of skills and talent.

The vast majority of job seekers are actively trying to find work, she said, and the ministry is placing them into jobs or training.

Whanganui & Partners chief executive Hannah Middleton.

In the last six months it has placed 21 people into the Mana in Mahi programme, where they are paid as they train.

Another 27 from the wider region are in the Be Your Own Boss programme, making business plans for self-employment.

The ministry can use initiatives like Flexi-wage to support more people into training and employment, including those who are not on a benefit.

Employers are looking at new recruitment methods, and investing in training, and more can be done, she said.

"Our key message to employers remains the same as it was in June – if you need staff, please contact us."

Middleton said the industries that created most jobs last year were healthcare and social assistance (532), accommodation and food services (180), wholesale trade (118) and manufacturing (87).

The biggest growth was in financial and insurance services, followed by professional, scientific and technical services, wholesale trade and manufacturing.

Whanganui & Partners is hearing that businesses are busy - even those that typically experience a quieter time at mid-year.

"We are getting a pleasing amount of new business and start-up enquiries," Middleton said.