Provincial job market bouncing back after lockdowns

Monday, 12 October 2020

Employers are being accused of taking advantage of badly worded wage subsidy rules and not paying workers what they are due.

Nine of the country’s 15 regions have more job listings this September than last year, according to data from Trade Me.

Analysis of 54,000 jobs advertised on the platform for the quarter ending September 30 showed the job market was much stronger than had been anticipated, Trade Me spokesman Matt Tolich said.

Bay of Plenty, Gisborne, Hawke’s Bay, Manawatu/Whanganui, Marlborough, Nelson/Tasman, Northland, Southland and Taranaki all had an increase in job listings in September when compared to the same time a year earlier.

“It’s great news for job hunters in the provinces that these regions are bouncing back stronger than the year prior, which is in part thanks to the many regional shovel-ready projects in the pipeline and our primary sectors getting back on track,” he said.

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Gisborne experienced both an increase in job listings and a drop in the average salary in the third quarter.

The regions with the biggest increase in job listings were Gisborne, up 53 per cent, Hawke’s Bay, up 25 per cent, and Manawatu/Whanganui, up 20 per cent.

The average salary in Wellington is the highest in the country, at $74,173.

Overall, job listings were down 10 per cent compared to the same period in 2019, but this was an improvement from drops seen in May and April, down 52 per cent and 72 per cent respectively.

Auckland job listings were much harder hit due to the second lockdown, with a 41 per cent drop in the third quarter compared to the year before.

“Hiring picked up significantly in the third quarter of 2020 and taking into consideration the huge impact the lockdowns have had on businesses this year, the job market is looking in pretty good shape,” Tolich said.

A new survey has found that housing is more of a concern to New Zealanders than the threat of unemployment.

The national average salary was $62,226 in the third quarter, which was barely down on last year’s $62,356.

Wellington held the title for the highest-paying region, with an average salary of $74,173, an increase of 1 per cent on last year.

The jobs that were affected the most were those paying $100,000 and over, with listings in that category falling 33 per cent compared to the same time last year, Tolich said.

This was reflected by the drop in listings in high-paying sectors like IT architecture, accounting, banking and finance, marketing, media and communications.

Agriculture, fishing and forestry experienced a 19 per cent jump in job listings compared to last year, and horticulture listings increased by 10 per cent, he said.

'Anecdotally we are hearing from our clients in the horticulture sector that they are still experiencing significant talent shortages due to border closures and given the level of interest in these roles the shortage is likely to continue.'

Sectors still struggling to recover from the lockdowns were customer service, science and technology and executive and general management.

Cash conscious businesses would “think twice' before looking to hire in executive management and invest in research and development in the current climate, Tolich said.

But employers and job hunters would be feeling optimistic about the future after “a very rocky year”, he said.

The final quarter would be crucial to understanding the post-Covid job market which had for some time been propped up with wage subsidy.

“With the subsidy having ended for most in September, crunch time will come in October and November for the New Zealand job market and we may begin to see some cracks appear.”