Tight labour market suits job seekers - but not business

By BRIAN FALLOW

The number of jobs advertised in newspapers testifies to continued strength in the labour market.

ANZ Bank, which monitors them, said job ads in March were up 3.4 per cent on February, when adjusted for seasonal effects, and were at the second highest level ever in the 10-year history of the indicator. Job ads were 11.2 per cent up on March last year nationwide, and in Auckland 6.5 per cent higher.

ANZ chief economist David Drage said such a tight labour market, while good news for job seekers, continued to cause difficulties for many businesses.

In the Institute of Economic Research's quarterly survey of business opinion last month, 23 per cent of respondents cited labour shortages as the biggest factor limiting their ability to raise production, the highest proportion for 30 years.

In Auckland, seasonally adjusted job advertising levels were almost unchanged on February. Apart from a surge in December, when ads continued later into the pre-holiday period than normal, advertising levels are the highest they have been since October 2002.

In Waikato, job ad levels were also unchanged. They peaked last September but are still 8.2 per cent above their levels a year ago.

Other provincial areas posted gains, despite the prospect of reduced export incomes. That testified to the severity of skilled labour shortages, which compelled employers to readvertise positions to a greater degree than they might have in the past, Drage said.

He cautioned that the underlying trend was a slowing rate of growth, suggesting the market was nearing a peak.