Election jitters cool the Kiwi job market
The general election has cooled the New Zealand employment market according
to analysis of over 71,000 vacancies advertised on Trade Me Jobs between July
and September.
Head of Trade Me Jobs Jeremy Wade said the strong double-digit growth in new
listings reported over the previous 12 months eased last quarter, and was
only up a modest 4.8 per cent year-on-year, and well down on the high of 16
per cent growth in the December 2016 quarter.
"Over the past three months, we''ve seen Kiwi employers put their foot on the
brakes as election apprehension has rippled throughout the country.
Traditionally during an election we see some effect on the employment market,
however greater uncertainty around this year''s general election has hit
harder than expected."
Listings from small and medium-sized businesses in particular tailed off more
than during the 2014 election campaign.
An indicator of economic slowdown?
Mr Wade said uncertainty around who would be in Government has delayed any
potential post-election recovery. "Once a Government forms, we typically see
the job market bounce back as the country finds its employment rhythm again.
However this year, with some policy horse-trading still to occur, we''ve yet
to see a significant improvement post-election."
Trades and services, which has been a large contributor to job growth over
the past year, dropped 4 per cent year-on year for the September quarter. In
contrast, transport and logistics which can be a bellwether for future
economic growth, increased 28 per cent year-on year. "We''ll be watching
these sectors closely once a Government is formed. If they continue to rein
in their hiring aspirations, then this may have an impact on economic growth
for New Zealand."
Job hunters in the driver''s seat
The average number of applications per role was down 17.1 per cent on a year
ago, with applications for roles in Auckland region falling 22.5 per cent.
"The market remains very much in favour of the job hunter and with a shortage
of skilled people to fill roles, potential employees are being more selective
about the jobs they apply for," Mr Wade said.
After a considerable delay, the skilled labour shortage is manifesting itself
in advertised wage growth. The average wage increased for the first time in
2017, up a modest 0.8 per cent year-on-year. Combined with the relatively low
competition for roles, Mr Wade said job hunters had good reason to be
optimistic.
"Average pay is up almost one per cent on this time last year which will be
encouraging for many Kiwis who have experienced little or no wage growth over
the past few years. Across the sectors, the big movers included increases of
18 per cent for legal roles, 11 per cent for construction and roading roles,
and a 7 per cent bump for architecture jobs," Mr Wade said.
Regions continue to rise
Outside the main centres, every region except the Bay of Plenty saw an
increase in new listings in the third quarter of 2017, with the West Coast up
53 per cent, Southland up 35 per cent and Marlborough up 31 per cent. "These
increases are huge, even in relatively small markets and can be largely
attributed to growth in the trades, services, hospitality, tourism,
construction and roading sectors," Mr Wade said.
The Bay of Plenty has been a star performer in recent years, but continues to
slow with the number of new listings stagnant year-on-year. "As a result,
employers in the Bay of Plenty have dug deep into their pockets with the
average pay increasing 3.7 per cent in the region as companies fight to
secure candidates," Mr Wade said.
Despite Auckland slowing, the "halo regions" adjacent to the Super City of
Waikato and Northland continue to exhibit strong, double-digit growth, albeit
at rates lower than the previous quarter.
Around the sectors
The third quarter of 2017 was positive for the majority of sectors with most
seeing an increase in new listings, led by increases in the architecture (up
28 per cent), property (up 33 per cent) and transport & logistics (up 28 per
cent) categories.
The categories with the largest decrease in new listings included accounting
(down 11 per cent), trades and services (down 4 per cent) and retail (down 4
per cent).
Auckland maintains hold over Wellington in the wage stakes
Auckland City continues to have a firm grip on the highest average wage, up
3.4 per cent on last year to $72,338, and beating out Wellington ($69,876)
for the third consecutive quarter.
Mr Wade said Auckland has been in a "wage war" with the capital this year.
"The divide between Wellington and Auckland City has continued to widen as
the capital struggles to keep up with Auckland''s steady job landscape."
IT jobs continue to hold strong as the most lucrative career, rounding out
four of the top five highest paid roles on Trade Me Jobs, with IT project
managers having the highest average advertised pay of $142,738.
-ends-
MORE INFORMATION
Interviews and regional data: Jeremy Wade is available for interviews. To
lock in an interview with Jeremy or for regional data, please contact Millie
Silvester by emailing mediaenquiries@trademe.co.nz or phoning (027) 601 7999.
Table 1: Top 5 listing growth by job category Q3 2017 vs Q3 2016
Category
Year-on-year % change
Q3 2017 vs Q3 2016
Property
33.3%
Transport & logistics
28.3%
Architecture
28.0%
Agriculture-fishing & forestry
27.8%
Science & technology
26.4%
Table 2: Average pay by job category (full-time only): Q3 2017
Highest Paid
Pay Rate ($)
1
IT project managers
142,738
2
IT architects
142,155
3
IT managers
133,427
4
Construction/roading project managers
116,174
5
IT data warehousing and business intelligence
115,784
Table 3: Listings growth by region Q3 2017 vs Q3 2016
Region
Year-on-year % change
Q3 2017 vs Q3 2016
Auckland
1.6 %
Bay Of Plenty
0.0 %
Canterbury
3.4 %
Gisborne
16.7 %
Hawke''s Bay
12.8 %
Manawatu / Wanganui
7.7 %
Marlborough
31.0 %
Nelson / Tasman
19.0 %
Northland
19.6 %
Otago
13.7 %
Southland
34.8 %
Taranaki
6.9 %
Waikato
15.5 %
Wellington
- 1.0%
West Coast
53.2 %
Grand Total
4.8 %
Table 4 : Average pay by region (full-time only): Q3 2017
Highest Paid
Pay Rate ($)
1
Auckland City
72,338
2
Wellington
69,876
3
Waikato
59,390
4
New Plymouth
59,341
5
Greymouth
58,801
End CA:00308235 For:TME Type:GENERAL Time:2017-10-05 08:30:13