Hawke's Bay's unemployment rate up, concerns it could lead to further increases

Some local businesses say they struggle to find enough skilled staff to employ. Photo / File

Hawke's Bay has seen a general decline in its unemployment rate over the past decade, but a small increase has some worried.

Hawke's Bay/Gisborne's unemployment rate as of the June 2019 quarter was 4.8 per cent, a 0.5 per cent increase on the June 2018 quarter.

Despite the slight increase the region has been following the national trend with a 2.4 per cent drop since the June 2009 quarter which averaged the largest unemployment rate for the year since the late 1990s.

That has led to increased employment numbers for the East Coast region as well with the total labour force increasing in the region by about 11,000 people in the June 2019 quarter compared with the same one in 2009.

The national seasonally adjusted unemployment rate fell to 3.9 per cent in the June 2019 quarter, down from 4.2 per cent in the March 2019 quarter, according to a recent Stats NZ report.

It is the lowest national unemployment rate since the June 2008 quarter, when it was 3.8 per cent.

Hawke's Bay Chamber of Commerce chief executive Karla Lee said that from outside the region the Hawke's Bay has a vibrant and healthy economic position.

"The employment market in Hawke's Bay is looking good from the outside with the region currently in a very sound economic position and new businesses coming into the region," Lee said.

"The housing market is staying strong while Auckland has slowed, and our horticulture sector is planning for great things over the next few years."

But she says for some inside and around the Hawke's Bay business and employment sector the issue they are facing is finding skilled staff to fill certain roles, which she says could lead to a continued rise in unemployment.

"On the inside, businesses are having difficulty finding skilled staff to fill positions.

"In a recent survey 45 per cent of the respondents stated a major business concern was skilled staff shortages.

"As an example, the construction sector is booming, however staffing this sector with qualified trades people is getting harder," she said.

"When staffing becomes an issue, businesses are forced to reassess, and unemployment rates can rise. Something isn't stacking up and while the region's unemployment has only seen a slight increase this could continue to go up."

Council of Trade Unions president Richard Wagstaff said although it is great to see the national unemployment rate at its lowest in more than a decade he still warns there are more than 100,000 Kiwis without work.

"The Government has a responsibility to ensure the creation of more good jobs.

"There is much opportunity for New Zealand to be a world leader in the creation of jobs which are good for our planet as well as being good for the people that are doing the work. This is the future of work."