Firstly, we need to understand the national employment market, and what trends are emerging. What has been obvious to all of us has been the impact of the global credit crunch and recession. The Department of Labour indexes national job vacancies, and the graph below highlights the impact the recession has had on job vacancies (sharply declining from a high in April 2007). Since August 2009 we have started to see improving job vacancy volumes at a national level (positive signs).

There has been a 5% nationwide increase in skilled job advertising in the last quarter of 2009⁽¹⁾, with this trend continuing into the first quarter of 2010. Overall business confidence has stabilised nationwide, with a net 23% of companies expecting improvement in the next 6 months⁽²⁾. National commentators are certainly not expecting a boom 2010 year (the NZ economy is tipped to grow by around 1.8% this year⁽³⁾). Rather it will be a year of cautious optimism and controlled growth over the low points seen prior.

One of the more basic but effective measures in reviewing local employment demand can be drawn by analysing SEEK volumes, as it remains a key NZ job portal for those organisations looking to actively recruit new staff.

In reviewing 2008 & 2009 side-by-side we see Hawke’s Bay job volumes have been down roughly 25% from February through to October on prior year. This is a lot lower than the national median reported by SEEK, Trade Me Jobs & APN – all at approximately a 50% drop in advertising volumes from November 2008 through until August 2009, when all have reported recovery (at varying levels). So, Hawke’s Bay has in part been sheltered from the full force of the global recession (reinforced by anecdotal conversations with many businesses & locals in Hawke’s Bay) – again positive news.

So what can we expect to see for 2010 in Hawke’s Bay employment market? Whilst we all wish we had a crystal ball for this year (and beyond), here are some of our thoughts:

• Both active and “below the radar” employment activities are on the rise. People with good experience and relevant skills remain sought after, especially in the Health, Sciences, Engineering, ICT, Accounting, Media & Advertising, and Infrastructure sectors. We also see more activity in the Finance & Banking sectors after a quiet 2009.
• High calibre jobseekers continue to be drawn to the Hawke’s Bay. Many are ex-pats returning from off-shore (which have helped boost the property market), as well as those in the larger centres seeking the lifestyle opportunity afforded to us locally.
• Many actively advertised roles in 2009 were back-fill or contract cover opportunities. In 2010 we are likely to see more newly created positions, as businesses seek to return to growth mode.
• Employers remain focused on skills & cultural fit, with industry experience and a proven track record continuing to be emphasised.
• Re-engaging demoralised and disengaged employees will be a factor for many organisations. With more opportunities becoming available in the employment market there will be an emphasis on retaining good staff. Recent workplace surveys have shown that between 42% – 60% of employees are looking to leave their existing employer given the right opportunity⁽⁴⁾!
• The larger metropolitan recruitment markets are reporting recovery at a faster pace than we are (the bigger the drop the bigger the bounce). Auckland has seen a 30% increase in February over January. Hawke’s Bay has definitely gotten off to a slower start than other parts of New Zealand, but expect us to catch up!

In summary, the Hawke’s Bay job market remains in a stable & improving condition. This stability, matched with the outstanding lifestyle opportunity, see Hawke’s Bay remain as a highly desirable location for many.

Sources:

⁽¹⁾Department of Labour Jobs Online 2009/2010

⁽²⁾NZIER Quarterly Survey of Business Opinion

⁽³⁾Economic & Risk Outlook – Dun & Bradstreet

⁽⁴⁾Varous Job Portal and Company Surveys 2009

At RIOT Recruitment we analyse & track local statistics (the focus remains on regional growth & activity). One of these is active job postings on SEEK, a basic but effective measure, as it remains a key NZ job portal for those looking to actively recruit new staff.

Interestingly, in looking at SEEK postings in 2008 & 2009 side-by-side we see Hawke's Bay volumes have been down roughly 25% from February through to October on prior year. This is a lot lower than the national median reported by SEEK, Trade Me Jobs & the NZ Herald - all approximately at a 50% drop in advertising volumes from November 2008 through until August 2009, when all have reported recovery (at various levels). So, we have in part been sheltered from the full force of the global recession (reinforced by anecdotal conversations with many businesses & locals in Hawke's Bay) - positive news.

The larger metropolitan recruitment markets are reporting recovery at a faster pace than we are (the bigger the drop the bigger the bounce), but even so we have seen a resurgence of local activity over the last two months. A lot of this has included placements & activity relating to opportunities that are not on the open market. We see improved business & consumer confidence continuing to lift the market at a steady pace through the first half of 2010.

In summary, the Hawke's Bay job market remains in a stable & improving condition. This stability, matched with the outstanding lifestyle opportunities, see Hawke's Bay remain as a highly desirable location for many (both nationally & internationally).

As always, we are keen to hear from others on their experiences and views...

Regardless of whether you are a supporter or a critic, there is a strong desire to make this work, with support from EIT, Venture HB, the Chamber of Commerce, as well as number of commercial organisations, all willingly giving time & resource to keep another positive HB tech initiative moving forward. We have already seen a number of steps taken on this (including presentation by NZTE & Creative HQ). We will have a further update at the ICT gathering on Monday 12th October 3:00pm at the Opera House (invites should be going out shortly for this).

It is also worth mentioning some of the other great cafes that we have in our region, which include Opera Kitchen, Bay Espresso (all of them), Fuse, Ujazi & others. In fact, you can pick up a pretty great coffee (and food) all across the Bay.

What has been your experience of local cafes?

This really is a beautiful part of New Zealand, encompassing rich alluvial plains, rugged mountain ranges, dominant water courses, stacks of quality wineries, an ever improving cafe & restaurant culture, international golf courses, and a long reaching coastline (great for diving, okay for fishing - tap into some good local knowledge on this).

I remember when being interviewed by an American journalist one day they referred to our  region as the "South Pacific Tuscany". A pretty good (if slightly liberal) analogy, which does reflect the strong draw to the region for a lot of  people originating out of Western Europe, as well as closer to home.

We enjoy a fantastic lifestyle here, balanced with fantastic schooling options for those with younger families. We also enjoy a great infrastructure (i.e. roading, transport nodes, power, ICT - which is getting a lot of attention at present).

One of the challenges has always been around the opportunity itself - lifestyle can often mean big compromise in terms of career and business. With increasing globalisation and advances in technology we are seeing a steady increase in the development of new opportunities within region.

A lot of people telework and commute out of region, while others are developing some really neat local success stories.

One of the key challenges still seems to be in terms of attracting more high tech investment into the region, leveraging our already strong primary production & export base (a pet hate of mine is our continued persistence in exporting low value commodities, when we have capability to convert this into a superior product offering).

What has been your experience of Hawke's Bay - the people, the place, the opportunity, what we need more of?