This report provides an outline of the latest employment demand and supply information available on the Canterbury rebuild and wider recovery, in order to inform decision-making and provide an update of the progress on the rebuild.
This report provides an outline of the latest employment demand and supply information available on the Canterbury rebuild and wider recovery.
Increased economic activity in Canterbury is expected to continue for some years. Rebuild investment provides new income to an increased number of workers. This supports demand for construction goods and services as well as consumption goods for workers. Temporary workers and homeowners rebuilding their existing homes require temporary accommodation. Consequently, house prices and rentals have risen.
Employment demand is strong for construction activities. Labour force participation is high and unemployment is low. Job vacancies in the construction industry in Canterbury continue to grow strongly. In the year to June 2014 the number of beneficiaries being placed into work has increased. At the same time, businesses are having difficulty in sourcing skilled and, to a lesser extent, unskilled workers.
Increased labour supply is being sourced from migrants and beneficiaries moving off benefits. Increases of students in industry training programmes will provide a source of future skilled labour. For the year to April 2014, there were an estimated 6,404 student enrolments in Institutes of Technology and Polytechnics and Industry Training Organisations for the year to date, up 30 per cent on the April 2013 year. Currently, the local supply of labour remains tight and is expected to remain so for the next two years as a large amount of construction work continues on the rebuild. However, there has been a steady increase in the number of temporary migrants arriving to work on the rebuild.
Due to the strong demand for labour in construction in Canterbury and limited supply, wage growth for the construction industry in Canterbury is higher than for the rest of New Zealand.