New Zealand construction is a factory with low manufacturing rates due to lack of workers. The industry has the potential to reach its peak, but plotted infrastructure projects haven’t been materializing with the shortage of manpower. There is generally great demand, but growth is still slow. More and more buildings are on the works but workforce for each project is still scarce.
The level of construction activity is undeniably escalating. Yet, the sector struggles to move forward with cost and human capital constraints. To increase the productivity of New Zealand construction, industry leaders and persons in charge will need to increase the number of workers. While a lot of companies still prefer local Kiwi employees, the chronic staff shortage in an industry ruled with tight timelines pushes for global recruitment.
In a report by the Ministry of Business, Innovation and Employment (MBIE), the New Zealand construction will boom by 2020. There is a lot of work to be done and it takes getting the right construction talents to deliver high-quality projects. Apart from high skill shortage, effective recruitment and retention of quality employees have been a great challenge facing the industry.
Based on Statistics NZ, roughly 3,600 out of 4,600 construction firms have current recruitment need with nearly 60% of which are hard to fill vacancies.
Civil Contractors New Zealand (CCNZ) confirms that not enough people were attracted to construction. No area has no abundance of staff. Human Resource Managers are having a hard time filling up their job sites with top local talents.
The country has a deliberately high rate of economic immigration, actually, one of the highest in the world. Auckland suffers a net loss of their natural born residents with the high influx of migrants.
Skill shortage accounts for an estimated 55,000 to 60,000 workers in the next five years. This means that there are a lot of opportunities to migrate to New Zealand for people with skillset required in the building of new houses, roads, and other types of infrastructures. Government’s immigration listed construction skills in both immediate and long-term demand. The recruitment campaign has been launched to place workers from other countries from temporary to permanent basis.
Recruitment of overseas work in New Zealand isn’t just marketing a job towards a green pasture but marketing New Zealand as the green pasture itself.
Nevertheless, the strong forecast demand in the country equates to it having a positive industry outlook. While the struggle in low productivity growth has been continuing, the capacity, capability, and the performance in the sector have been on the works.
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