Bridging the Skills Gap – Be part of the Solution!

“Forty two percent of firms believe it will be harder to employ people with the right skills, compared to 37% a year ago. Those finding it difficult to recruit unskilled workers also increased, from 15% a year ago to 17%. Those sectors most affected are manufacturing, technology and trades…. Auckland Chamber of Commerce Business Confidence Survey June 2007.”

If New Zealand wants to remain competitive in a global marketplace where the majority of workers earn a fraction of the salaries paid here, we must have the most competent and innovative workforce possible. Yet New Zealand has one of the worst records for skill shortages – we are near the top of the OECD skill shortages list and the gap is widening. We now recognise that our widening skills gap is one of the major barriers to our growth as a competitive nation.

The skills gap has resulted from a shift in our economy. The number of jobs for the unskilled has declined steadily over the past several decades and we are seeing an increase in semi-skilled jobs. In the next ten years, there will be a huge growth in skilled jobs as more semi-skilled jobs are automated. Impacting on the problem is the rapid development of technology, the increase in technology based jobs and the development of new industries based on technology advances.

Add to this, the expected change in demographics in the years ahead as the number of people in the workforce declines relative to those above the traditional retiring age, and it is obvious that we must find a way to prepare all our population, including those with disabilities and limited English proficiency, to become contributing members of the work force.

We cannot afford to delay our response to the problem, since as we seek to be more productive as a nation we will have to concentrate even more on the skills of our workers. We need to focus on the issue from many angles, both regionally and nationally, both short and long term, from an education and an industry perspective, and from the perspective of individual employers and employees.

Recent discussions with Northland employers have indicated a high level of dissatisfaction with the skill level and ability of job seekers. This seems to be particularly prevalent in the Engineering, Electronics and Marine related Industries. These sectors also report aging workforces.

Concerns expressed are a lack of basic literacy and numeracy along with very little understanding of employee responsibility. Add to this that a high percentage of our youth are missing out on the opportunities to become employed in certain Trades due to the fact that they don’t have a clear idea of where their interests really lie.

There has been some indication from Industry that an intensive generic Pre Trade Training Course may go some way to addressing these problems. Local company Steelcom, Advance Training and the Chamber of Commerce are spearheading an initiative to be part of the solution in our ever widening skill gap.

To achieve funding for such a course, Industry Support and Input into the Course Content is essential. This support and input also ensures the course would be meeting Industry needs.

A meeting is planned for 19 July 2007 at Advance Training Centres Limited, Level 1, Farmers Building, 58 Bank Street
Whangarei, 4 pm – 5 pm

Those invited will be Industry Representatives, Modern Apprenticeship Co-ordinators, Northland Chamber of Commerce, Enterprise Northland, Ministry of Social Development. You are invited to attend to register your interest for a motivated, pre trade trained keen employee.

If you wish to discuss this further, please contact Wayne Hyde 027 278 1401 at Advance Training or RSVP by contacting the Northland Chamber of Commerce on info@northchamber.co.nz or 4384771


“be part of the solution”

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com

7 June 2007


“Another kick in the guts for growth….”



Responding to the Reserve Bank announcement raising the Official Cash Rate (OCR) to 8%, Jeff Smith, Northland Chamber of Commerce CEO noted that part of the justification was that the rise in dairy sector incomes will add to inflation pressures.

“Once again we are told that the more successful we are, the more we will be punished.”

Meanwhile the continuing high government sector spending gets only the briefest of mentions, when clearly this sector going back over the last 2-3 years is the main inflation culprit.

“Blaming inflation on growth success shows we have a deep seated problem in the fundamentals of the economy. On the one hand Government wants businesses to grow and increase wealth, but when businesses do so the Reserve Bank stifles that success and blames the very growth we want for adding to inflation.”

“We should be encouraging and rewarding export-led growth – not constraining it. We should be hammering Government to keep price increases in non-productive areas like rates and water to below inflation – not passively accepting these rises.”

This is the third rise since March. Is this what he will continue to do until growth is squeezed out of the economy? “What we are doing is not working. It’s time the Government and Reserve Bank inquiry launched last year into a better way to encourage growth and control inflation was given some urgency.”

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com