Construction firms struggling to fill vacancies

Statistics New Zealand’s 2016 Business Operations Survey found that more than 2,500 construction businesses have ‘hard-to-fill’ vacancies

The 2016 Business Operations Survey (BOS) represented almost 40,000 NZ businesses, with 4,566 operating in the construction industry.

Compared to 2014 – when 4,017 construction businesses were included in the survey – the number reporting vacancies rose from 74% to 79%, with 58% reporting they had ‘hard-to-fill’ vacancies.

Overall, 76% of the businesses surveyed reported vacancies, with 47% reporting ‘hard-to-fill’ vacancies. Only businesses with more than six employees were included in the survey.

The BOS showed that only 5% of construction business had more than 50 employees. The vast majority (78%) reported they had between six and 19 employees, with the remainder having between 20 and 49.      

30,000 jobs to fill by 2019

The construction industry’s recruitment woes are unlikely to ease in the near future, with the latest MBIE Employment Growth Forecast finding that almost 30,000 new employees will be required in construction over the next three years.

That would take the total number of people employed in the industry to more than 223,000 by 2019.

Canterbury (9,177) and Auckland (8,787) combined represent almost 62% of the total projected employment growth in the industry. Bay of Plenty, Otago, Waikato and Wellington were the only other regions where projected industry growth exceeded 1,000 employees.

Online Business

Every construction business in the BOS uses the internet, with 4% reporting that internet sales now make up more than 50% of total sales (compared to 0% in 2014).