Global Skills Index
Hays Global Skills Index
New Zealand fails to meet demand for highly-skilled professionals.
The Hays Global Skills Index, produced in conjunction with Oxford Economics, is a detailed report examining the global skilled labour market and puts into context the challenges employers face as they compete for the most sought-after skills.
New Zealand’s overall score of 5.5 is calculated through an analysis of equally weighted indicators, each scored out of 10, with 1 being a low pressure point and 10 being a high pressure point. These include:
New Zealand’s talent mismatch between the skills jobseekers have and those employers want sits at its highest level in eight years.
The talent mismatch is most obvious in high-skill industries and for roles that require highly-skilled professionals, such as technology, engineering, construction and sales.
A summary of New Zealand’s indicator scores
- Talent mismatch: New Zealand scored 5.8, the highest since the inception of the index in 2012, suggesting there is a widening gap between the skills employers need and those available in the labour market;
- Wage pressure in high-skill industries: New Zealand scored 10.0, the highest score possible, showing that wages for jobs in high-skill industries are under extreme pressure and sector specific skill shortages (such as in engineering and technology) are acute;
- Overall wage pressure: New Zealand scored 6.1. This suggests that highly-skilled professionals are aware of the demand for their skills. Our 2019-20 Hays Salary Guide confirms that they are prioritising a pay rise, however with employers keeping salary increases subdued, a ‘tug of war’ over salaries ensues;
- Labour market participation: New Zealand scored 5.6, up from 5.4. The rate at which the participation rate is increasing is forecast to slow, which will reduce the pool of skilled labour and put pressure on employers who want to expand.
Global Skills Index form main region
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