Concerned University of Auckland students hold an open forum on the proposed review and potential cuts of courses across the university. Video / Sylvie Whinray
A rise in Bay of Plenty job vacancies advertised is providing a glimmer of hope in Rotorua that the sluggish economy might be picking up.
But it’s come with a warning that we are still in for some tough times ahead.
Job ads increased in the Bay of Plenty by 16% in July compared with the previous month, according to the latest Seek NZ Employment Report.
That rise was the biggest of any New Zealand region and was the biggest seen in the Bay in more than three years.
Nationally, job ads rose month-on-month by 3% - the first increase nationally since January.
The Seek report showed the boost in job ads were in retail and consumer products (up 24%), and hospitality and tourism (up 20%).
But the figures showed job numbers were still a long way off 2023 figures. The year-on-year trend is a 20% drop in Bay of Plenty and 29% nationally.
Optimism in Rotorua
Talent ID Rotorua branch manager Holly Oppers said there had been “some movement” in the market during the recent month, especially around technical roles and specialised positions.
She said there hadn’t been a rise in common vacancies such as receptionists and administration roles.
“We are seeing restructures still happening with many organisations and other organisations taking advantage of this to fill their own teams with strong qualified candidates.”
Talent ID Rotorua branch manager Holly Oppers. Photo / Supplied
She said there were still plenty of skilled people struggling to find work and candidates were remaining in the job market longer.
She said it was a great time for employers to think about filling any gaps in their teams.
“Utilising temp support is another option that we recommend to clients, especially if they are uncertain of where things are heading.
“However, we are seeing more confidence when we are talking with organisations around their people and culture strategies and many are upskilling and filling their teams ready for 2025, with many predicting an upturn in the economy later this year.”
Oppers said the Seek report results were great to see; “May it continue”.
McDonald's franchise owner Rob Parry. Photo / Kelly Makiha
McDonald’s Rotorua franchise owner Rob Parry said he was “definitely hiring” and had about 10 positions at the Fenton St and Te Ngae Rd McDonald’s restaurants.
He said if they didn’t get the right candidates, they advertised again.
“Overall I think we are in a better place now and we are finding it a bit easier to find good staff.”
He said unlike some other businesses struggling during the current economic climate, McDonald’s was operating on the same staffing it was a year ago.
“We are hiring to replace when most businesses are downsizing.”
Parry said given the nature of the business, there would always be frequent staff turnover as staff left to go to university or take on other employment.
“It’s a tough time, no doubt. The pressure on the cost of food and electricity makes it more of a challenge for everyone but I’ve been in business long enough to know that everything goes in cycles. We just have to hunker down in this cycle and get ready to get back up.”
More from the report
The Seek report showed applications per job ad remained steady, rising 7% month-on-month.
Southland (-12%), Tasman (-4%) and Gisborne (-1%) were the only regions to record monthly falls.
Bay of Plenty saw the largest increase, with ads rising 16% from June — the largest monthly growth in the region in more than three years.
Nationally most industries recorded an increase in job ads in July.
Customer-facing industries including retail and tourism saw notable growth.
But there was also significant growth (22%) in government and defence jobs. Consulting and strategy was the only industry where job ads declined in July, down 7%. Some industries, such as manufacturing, transport and logistics, and administration and office support roles recorded no change month-on-month.
While white-collar and service industry roles drove the increase in major cities, outside of urban centres, the construction sector recorded a 14% increase in job ads, driven by rises in design and architecture and trades and services.
Seek NZ country manager Rob Clark.
Seek NZ country manager Rob Clark said the pleasing increase followed five months of consecutive declines, including an 8% fall in June.
“As seasonal industries that are prone to fluctuation, the rise in volumes in retail and consumer products, and hospitality and tourism may be a sign of businesses preparing for busier seasons.”
In larger regions, including Bay of Plenty, Auckland and Wellington, July saw the largest monthly rise in job ads in more than two years, or three years in the Bay of Plenty’s case.
“What hasn’t changed this month is the fierce competition among candidates, which shows no sign of abating.”
Cautious optimism
1st Call Recruitment general manager Andela Singleton said a rise in month-on-month figures should be viewed cautiously.
She said the year-on-year trend in the Bay of Plenty and New Zealand was far from where it needed to be.
The Bay of Plenty historically boomed more from September to April given its tourism and hospitality vibe, Singleton said, and the rise in job ads in July could have been a result of businesses planning for those months.
“There’s Christmas parties, end-of-year functions, it’s warmer, everyone’s happier, people are buying and getting ready for Christmas. But this isn’t a true indication of where the market is. We are still 20% down year-on-year and the economy is still really sluggish.”
Singleton said inflation was still too high and interest rates needed to come down, despite the Reserve Bank’s announcement last week it was cutting the official cash rate by 25 basis points to 5.25% - the first cut in four years.
“We know every industry is hurting significantly ... We are seeing ghost towns throughout New Zealand because people just don’t have surplus cash ... The kids’ shoes are a bit worn but we won’t buy new ones now, we’ll give it another month, we won’t do those $20k renovations and will do it after Christmas, that all has a flow-on effect in every industry.”
Singleton said their customers predicted the economy, and therefore the job market, wasn’t likely to improve significantly until the start of next year.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
