'When you try to put down roots, there's rot' – warning to Wellington about retaining young talent

Sunday, 8 November 2020

Wellington’s “coolest little capital” pitch needs to take a back seat to fixing housing and infrastructure problems, private sector workers have told the city’s representatives.

Wellington needs to fix major infrastructure and housing problems if it wants to attract and retain skilled workers, young professionals have told the city’s representatives.

The capital has long sold itself not just as the seat of government but also as a city with a vibrant cultural and culinary scene. Years of underinvestment in transport and infrastructure, and a rapidly worsening housing crisis have, however, eroded that reputation.

Feedback from young professionals highlights the potential impact on Wellington’s economy as a whole.

“There’s a lot of gloss [about the idea of Wellington], but when you try to put down roots, there’s rot,” one person told a Wellington City Council business advisory group comprising business representatives, Mayor Andy Foster and city councillor Diane Calvert.

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Workers involved in research into the state of Wellington’s professional services sector say the advertised promise of the city does not meet the reality of living there.

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A group of 19 people aged between 25 and 40 who work in IT, engineering, law and accounting firms spoke to the group. Their comments form the basis of a report that was sent to councillors and local MPs over the weekend.

The report does not make for happy reading.

“The ‘coolest little capital’ slogan doesn’t attract everybody,” one participant said, using a moniker the council has embraced. “There needs to be another selling point for the city.”

Another said: “For years, the council has focused on the gloss. The infrastructure has failed in the meantime.” The participants were not named in the report.

The workers say Wellington has character, but efforts need to turn to attracting and retaining skilled workers.

Their views were canvassed in an open feedback session with the group in September, and in subsequent follow-up comments.

Many of the young professionals moved to Wellington because of its promoted personality and character. While most said there were lots of good things about the capital, they said that expensive housing, crumbling infrastructure and a lack of jobs meant there was a widening gap between the city’s sales pitch and the reality of living here.

Brad Olsen, senior economist at consultancy firm Infometrics and a co-author of the report, said it highlighted a desire among young private sector workers for Wellington to move on from its destination marketing campaigns and promote the city as a business destination as well.

Up to 100 litres of contaminated water per second gushed into Wellington Harbour after a wastewater tunnel collapsed in Willis St in December 2019.

“People want to come to Wellington, but they want to make sure they can have a high-quality job and a high quality of life,” he said

Olsen and co-author Chamanthie Sinhalage-Fonseka, a public relations professional who has worked at and with the council, said in their report the feedback exposed concerns among young workers about the city’s failing infrastructure and lack of affordable housing. These problems could drive people out of the CBD and discourage private business ventures.

That was especially evident in the IT sector, they said in the report, with one participant observing an “active downscaling” of tech sector office space following the coronavirus lockdown.

“The increased move towards working from home – and in some cases, firms mandating working from home – risks talented workers moving away from the central city and spending their time and money elsewhere,” they wrote.

Crumbling infrastructure, such as a failing wastewater system, are contributing to the city’s problems, the workers say.

A similar discussion with private sector leaders last year revealed that Wellington was becoming less attractive to young professionals, and it was agreed at the time that some of those professionals be invited to expand on those concerns.

The workers spoken to represented the kind of talent firms wanted to attract and retain in Wellington.

The professional services sector makes up 22 per cent of Wellington City’s workforce, with median incomes between $65,000 and $100,000, and an average age predominantly between 30 and 45, according to data from Infometrics and the professional services sector.

The number of properties for sale in Wellington has increased dramatically, according to Trade Me Property.

The participants were asked for their thoughts on the state of Wellington in 2020 and the impact of the lockdown on their sectors.

One of the major concerns was a lack of job and career development opportunities compared to Auckland, especially in the law profession.

“I’m living in Wellington because I didn’t want to live elsewhere, but it was disheartening that most job opportunities are in Auckland,” one participant said.

“Wellington feels like the second option,” another said. “All the big firms’ head offices are in Auckland.”

People from the IT sector also raised concerns about people’s willingness to start up new businesses because of the high cost of living.

“[It’s] easier to start a business if the cost of living is lower,” one said. “[It] comes back to housing, infrastructure, affordable transport.”

Housing quality was a recurring theme, with concerns raised about the cost and health risks of cold, damp rentals.

“I’m used to cold, bad flats in Dunedin,” one participant said. “I wanted a different situation in Wellington, [but] there are either horrible student flats or expensive high-end [homes]. There is no middle.”

Calvert, who holds the council’s economic development portfolio and helped to establish the advisory group, said the feedback would contribute to the city’s wider review of its economic development strategy.

“These are an important group of Wellingtonians that make up our city now and into the future. We will be using their insight as we review our economic direction and the associated strategies such as housing,” she said.