Bay of Plenty's unemployment rate falling: Could vaccine mandates change that?

A recruiter says the region's falling unemployment rate could be rocked by the vaccine mandate. Photo / Getty Images

A Rotorua recruitment agency is expanding to prepare for a spike in new job seekers as a vaccine mandate deadline approaches.

Stats NZ's latest figures show the unemployment rate for the Bay of Plenty in the September quarter was 3.8 per cent.

This was 0.1 per cent lower than the same quarter last year but slightly higher than the 3.6 per cent recorded over the same period in 2018.

The lowest recorded unemployment rate for the region was 2.9 per cent in June 2007.

The vaccine mandate requires high-risk workers in the health and disability sectors to be fully vaccinated by December 1. Schools, early learning staff and support people who have contact with children and students are required to be vaccinated by January 1.

Top Staff Solutions managing director Kirsten Bangs. Photo / NZME

Rotorua-based Top Staff Solutions managing director Kirsten Bangs said she was expanding her business due to market demand and the expected rise in job seekers as a result of the vaccine mandate.

"It's going to make recruitment really busy."

There was still a high number of unvaccinated people and if they lost their jobs businesses would need to fill those positions with vaccinated people, she said.

Bangs said a lot of people were rewriting their health and safety policies to include proof of vaccination.

"I don't feel people will have a choice. People are just going to have to comply or not have a job."

She thought Rotorua's unemployment rate was probably higher than the regional figure.

Rotorua-based Talent Id director Kellie Hamlett. Photo / Supplied

Rotorua-based Talent Id director Kellie Hamlett said the job market was "incredibly tight".

"Compared to previous months, we were receiving a lot more job applications than we are now."

However, Hamlett did not think the new vaccine mandate would have much of an impact as people would find employment elsewhere.

"People who lose staff will be crying out for staff that will be hard to replace. On the other side, that will create a bit of movement in the market to place those people into other roles."

Rotorua Business Chamber chief executive Bryce Heard. Photo / NZME

Meanwhile, Tauranga-based The Staffroom Ltd director Jill Cachemaille said they had been contacted by people working in those sectors who were looking for employment in different fields as a result of the mandate.

"However, the success of those applicants finding new employment totally depends on whether other businesses implement the new vaccine mandate."

1st Call Recruitment managing director Phil van Syp said employers usually hired the person with the right skills but now a candidate's vaccination status could be a factor.

About 60 per cent of companies using the recruitment company required people to be vaccinated, he said.

"People (who choose not to be vaccinated) are going to find it extremely hard to find employment."

He said the employment market was booming, with an abundance of jobs but not enough people.

"We could easily do with about 100 people right now."

Rotorua Business Chamber chief executive Bryce Heard said the region's 3.8 per cent unemployment rate was "implausible" for Rotorua.

"Low unemployment implies a strong and growing economy."

"While some parts of our economy are strong, including forestry and farming, a major part of our economy, related to tourism, travel, events, retail and hospitality is under unprecedented stress."

Tauranga-based Priority One chief executive Nigel Tutt did not believe the vaccine mandate would have a major impact on the unemployment rate but said there would not be many options for displaced staff.

Tauranga Chamber of Commerce chief executive Matt Cowley said members reported that it was taking an average of three to six months to fill vacancies.

"Everyone I speak with says their greatest challenge is hiring and retaining staff."

"As we have labour shortages across the board, anyone who is let go from work because they are not vaccinated will likely find other work with a place that does not have the same vaccination requirements."