Its time to get a workforce reality check and this is why
Its going to be several years yet before we see inflation begin to taper off and I know for a lot of your mortgage and financial stress is one of the biggest challenges. The cost of living is continuing to rise and not just food prices and the staples. Its also going to impact those with mortgages and those who have borrowed against assets that are already leveraged. But what I would do is put a context around this that its not just New Zealand. And then make some suggestions of things you can do now. Australians are well aware that the cost of living is increasing. Prices of food, gas, petrol and rent have skyrocketed thanks to the inflation rate rising to?6.1 per cent in June?–?a 21-year high. International events such as supply chain interruptions, COVID-19 implications and the war in Ukraine saw inflation in OECD countries rise to 9.6 per cent in May compared to 9.2 per cent in April.?This represents the sharpest price increase since 1988.
United States of America: Inflation rate:?8.5 per cent
New Zealand Inflation rate:?7.3 per cent
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Australia: 6.1 per cent in June?–?a 21-year high
It takes time for inflation to come down and there are a whole lot of levers that need to be pulled that New Zealand cannot do by itself. This includes the world events that are impacting us such as the War and also supply change issues. On that last night we are seeing it already with an increase in the costs of getting cargo to and from NZ and then on basic goods such as building and electrical supplies. The thing that is also happening as a lever is the increase in wages that some are experiencing although I would argue if we had have maintained annual consumer price index changes into our employment contracts that would have been a matter of course in some cases. Then there is the challenge of ramping up local build and infrastructure projects which works for a while but then becomes incumbent on a ready workforce to build – that brings me to the labour constraints. When I was leading out in the global financial crisis in Australia between 2007-2010 we faced some of the same challenges but not on this scale. Investments from Governments across the country were made to both stimulate the local and national economy and to a large degree it worked – everything from refurbishing school halls and putting flag poles up to the big ticket items of road and bridge building – but this time is different because its not so much a money issue as it is money, events and supplies all wrapped up. And to boot we do have a labour shortage. Many people have decided to remove themselves from the supply chain by retiring early because of the pandemic at one end of the spectrum or the delay in moving people into the labour market post study because many of our institutions have delayed the normal education and graduation cycle. Then there are the hundreds of thousands of people that have been removed because they have lost their lived due to the pandemic. Tens of thousands of health professionals among them. Source countries that traditionally provide these skills to the market have been particularly hit the last two years such as the Philippines and Indonesia.
My point is it will take more than just a few weeks or months to build back it will take some years – why? Because as I have outlined its not easy and its not simple. The solution? An effective cross sector and industry workforce strategy and the time to reengineer our tertiary, technical and vocational sectors when it comes to qualifications. In other words what priority skills can we deliver to market sooner than we are.
AI-powered dictation & document workflow solutions for clinicians
2 年Making higher education and training more accessible is key in my opinion!
Elastic Public Sector Account Executive
2 年Another thought provoking article thanks Matt, I agree these inflationary and cost of living issues are going to take years to play out "....what priority skills can we deliver to market sooner than we are." A recent salesforce study identified 26,000 people are needed just around Salesforce by 2026; https://lnkd.in/g76sA5HZ This number would be significantly larger, when you take into account Amazon Web Services (AWS) and others building data centres in NZ At many of our Salesforce community events thanks to Anna Loughnan Colquhoun, I have met many individuals who have trained using Salesforce's Trailhead platform to attain "in demand" skills, often with 2 -3X prior earnings in their new roles. Reading about Rotorua as one example, wherein 18% have no Internet connection, and Wellbeing, deprivation and unemployment issues are some of worst in the country. Is there an opportunity to play a role in resolving this digital divide, through providing priority training for in demand skills through partnerships with a network provider? Network for Learning (N4L), Spark New Zealand could play a significant role here. #PartneringforWellbeing. #data #digital #trailhead #learning #equality #equity #wellbeing #wellbeing #salesforce
'People Helper' (Business Consultant/ Advisor, Commerce Lecturer), Author
2 年The only metrics that I have any degree of interest in where N.Z.'s employment and education pursuits are concerned, are: A) Resulting change (improvement) in the ratio of unemployed:employed:unemployable. Yes, if you want a "reality check" to take place then face-up to the fact that there is a portion of the N.Z. population that is "unemployable". This demographic either can't apply themselves to work, and/ or won't and/or are not willing to be trained (via tertiary studies or otherwise). B) Resulting change (improvement) in productivity metrics (particularly productivity outcomes - e.g. GDP). All other indices are secondary, in my view. I will be watching with interest to observe the improvement in outcomes in the above two areas.
Director @ Tātau Tātau Horticulture GP Limited | Chair, Muka Tangata
2 年Great korero Matt , understanding the supply demand opputunities and collaborating across regions, communities and industry making a space for all to succeed and thrive .