CEQ Employment update

• Things are tough out there. The infographic from The Future of Jobs Report (Stage Two) by the Ministry of Business and Employment illustrates the feelings of insecurity among workers. The highest numbers feeling insecure are in the construction, professional, scientific, retail, transport, healthcare and financial sectors.

• Unemployment is trending upwards, with 148,000 people out of work, with it set to rise again, upwards of 5% plus. “Demand continued to weaken with online job advertisements falling by 31.4% over the year to the September 2024 quarter” according to the Jobs On Line Monthly Report released recently also by MBEI.

• Advertisements fell for all industries. The biggest annual falls were in the IT, Health care, Manufacturing, Business services, and Construction industries. The smallest annual fall was for the Education industry.

It’s no surprise that redundancies will continue in the foreseeable future, with some individuals facing a second wave of job cuts. This situation affects a wide range of people, including those who have spent most of their adult lives in, sometimes specialised career pathways, highly skilled individuals in their twenties, and workers in the manufacturing industries. Some of these in the regions have been devasting for small towns where a large proportion of the population work for one employer. However, the global economic tightening is felt by everyone and in every industry.

The situation is complex and includes increased flows of migration and immigration.

Distinguished Professor Paul Spoonley had an important point to make this week on Radio NZ. New Zealanders are leaving in droves, and according to Stats NZ, the “138,600 migrant departures in the May 2024 year are, provisionally, the highest on record for an annual period.

Although information is no longer collected on why people are leaving New Zealand, the current state of the labor market raises the question of whether our most talented individuals are seeking more stable and better-paying positions elsewhere.

Youth unemployment also continues to be concerning, with many apprentices being left in a precarious position as firms close and graduates not finding employment.

• 20.7% for 15–19-year-olds, up from 15.1% in the June 2023 quarter

• 8.0% for 20–24-year-olds, up from 5.8% in the June 2023 quarter

Even further, the University of Canterbury is no longer accepting any more students into hostel accommodation next year, suggesting that young people are choosing study, rather than enter a tough work environment. Competition for flats will also be difficult as students look for housing so they can attend their study programmes.

Many of those people close to retirement are choosing voluntary redundancy (and these figures may not be captured in the unemployment stats). We wonder what happens to organisations when all that experience, skill, and institutional knowledge walks out the door.

Employees who have kept their jobs after the initial restructuring often feel anxious and uncertain. They are in a precarious position, unsure if further cuts are coming or what steps they need to take to protect themselves from potential future layoffs. Especially when many organisations just cannot afford to provide paid support for their redundant workers.

Along with this, competition for jobs is fierce - there are a huge number of people applying for advertised roles, and those roles pay less than they did a year ago.

When times are challenging, career development support can help. At a minimum:

• Sharpen your CV, your interview skills, and identify tips for looking for work that aren’t advertised.

• Ensure your identity is kept separate from your work,

• Maintain a strong sense of the value you can add and keep mentally well – remember you are not your job!

Importantly and essentially, developing your career can help you to protect, maintain and grow your value in the labour market. This can happen when you get strategic. Determine your strengths, personality, skills, values, motivators, and the unique ‘you’ you bring to your community and world, and make a plan.

Note that access to career development may be free through your Employee Assistance Programme provider. It’s worth asking as it’s worth investing in you.

Get 10 minutes of free advice: Contact CareerEQ – Phone 0064 21474765 NOW.

Authors: Jenny Bean and the CareerEQ Team