Kiwis pushed across the ditch as unemployment rises
Friday, 20 September 2024
More people in New Zealand are applying for jobs than there are jobs, which is pushing them across the ditch in search of more opportunities.
Seek NZ’s latest Employment Report found job ads had declined 11% quarter-on-quarter and 31% year-on-year, while the number of job applications were on the rise, up 3% month-on-month, while JobAdder’s Q1-Q2 2024 State of Market Report found applications per job rose from 27.3 in Q2 2023 to 43.9 in Q2 2024, an increase of 61% during the year.
The unemployment rate rose to 4.6% in the three months ending to June, up from 4.4% in the previous quarter, and compared to 3.6% at the same time last year.
Aaron Gerrandaro, from rural Pahiatua, struggled to find work in the electrical field in Palmerston North, near his hometown. Despite finishing his pre-trade course in 2018, he ran out of jobs to apply for.
“I ended up finding a job at Iplex driving forklifts for about a year.”
The 30-year-old decided to move to Hamilton to try find an apprenticeship, which he did, but due to the market down turn he was eventually made redundant.
“During the first 8-9 months, we had enough work to keep us busy, but by the end of 2023 and the start of 2024, there was a big downturn in the electrical and construction markets.
“Where I used to have full days of work, I was only doing half days — if that. By the time I left this business, I was lucky to get about 1-2 hours of work a day.”
Although he managed to get another job, speaking to others in the industry did not give Aaron confidence that he would be able to finish his apprenticeship, or work as a full time qualified electrician given the economic conditions in New Zealand.
So he packed his bags and flew across the ditch to Perth where he found there were more job opportunities and a higher likelihood of completing his apprenticeship.
“I didn’t feel that my job was secure enough to finish my apprenticeship, or that there would be many opportunities once I became a fully qualified electrician, which is why I’ve made the jump to Perth.
“I believe New Zealand is moving backwards. The cost of living has skyrocketed, and I don’t know how people are surviving. I hate to say it, but I’ll probably become a first-generation Australian.”
And Gerrando wasn’t alone. Australian Bureau of Statistics data shows New Zealand as the top source of migration to Australia at 18%.
The Seek Employment Report showed those looking for a job in the retail and consumer industry would be battling more applicants than ever, with candidate demand increasing 119% in the past year for jobs in the industry. Those looking for a job in consulting and strategy also faced a 100% increase in applications per job ad.
The capital, which has faced hundreds of redundancies across the public sector, had the biggest increase in applications per job, up 74% this year.
JobAdder data showed despite an influx of candidates, recruitment agencies were seeing job creation was trending downwards with the number of jobs per account decreasing from 56.5 to 44.5 over the same period.
Martin Herbst, chief executive of JobAdder, said the significant uptick in the number of job applications compared to the limited job openings was having an impact on recruiters.
“Recruiters are no longer struggling to find candidates – they’re inundated with them. The real challenge now is filtering through the high volume of applications to identify the most skilled and qualified candidates.”