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Recruitment companies say the much-touted skills shortage is over, but this is not good news for job candidates.
Scott Groombridge of Sead Project People, which deals mostly with candidates in information technology (IT), said a number of Auckland businesses had cut back on projects or merged their operations over the past six months, and an estimated 7000 skilled professionals were out of work.
This would increase the number of unemployed in Auckland by 23 per cent - from 31,000 to 38,000 - Groombridge said.
"All you need is a small change in unemployment to make a big impact."
Trudy Atherton, director of Assyst Management Group, said recruitment companies read the recent Business New Zealand survey about a skills shortage with raised eyebrows.
"We keep hearing that there's a skills shortage but at the coal face we are just not seeing that," she said.
Applications from skilled candidates were flowing in but vacancies were not.
Atherton said the reversal had caught everyone unawares and some recruitment companies were also laying off staff.
"We were told there would be a skills shortage for quite some time and now it's just done a complete reversal and people are suddenly floundering."
Atherton recently spoke at a computer training academy and warned students jobs were scarce and that they should look at contracting.
Director of Evolve Recruitment Arran Finlayson said he had seen a number of candidates who lost their jobs when finance and property companies collapsed.
But an influx in skilled job seekers was a positive thing for New Zealand.
"Last year you would struggle to find candidates and now you will almost be able to get a shortlist."
He said exceptional candidates will always have options.
