More than half, or 52%, of employers in New Zealand intend to increase permanent staff levels in the next 12 months, according to Hays New Zealand.

Research from Hays found that 16% of the approximately 600 employers surveyed also intend to increase their use of temporary or contract staff.

According to Hays, over three-quarters of employers say permanent staffing levels are either above (30%) or equal (47%) to their pre-Covid-19 level.

Meanwhile, 63% of employers have returned to growth or rapid growth and 72% say business activity will increase over the next 12 months. At the same time, 62% of employers are optimistic about the wider economic climate and the employment opportunities it may create in the next two to five years.

The majority, or 70%, of employers say skills shortages will impact the effective operation of their organisation or department in the next 12 months. 

New Zealand’s North Island is facing the greatest impact, according to employers, as skills shortages spread across this location quicker than others. In the North Island, 74% of employers say skills shortages will impact the effective operation of their organisation. 75% say permanent staffing levels are above or equal to pre-Covid-19 levels and 53% expect permanent staffing levels to increase in the next 12 months.

Meanwhile, in the South Island, 58% of employers say skills shortages will impact the effective operation of their organisation while 79% say permanent staffing levels are above or equal to pre-Covid-19 levels and 47% expect permanent staffing levels to increase.

Adam Shapley, Managing Director of Hays in New Zealand said, “Fiscal stimulus and control of the spread of Covid-19 has helped to create a jobs market recovery, with employers navigating their way out of the pandemic and reinvesting in headcount growth. However, acquiring top talent with the right skills is not as easy as it first seems. An old challenge has reared its head once more – skills shortages.”

“With hiring activity increasing, the supply and demand imbalance has now tipped firmly in favour of skilled professionals,” Shapley added. “While employers have so far managed the shortage, they are reaching their turning point. In the next 12 months, almost seven in ten say skills shortages will impact the effective operation of their organisation or department.”