performance is the level of recruitment agency activity. Whether it’s
strong organic growth or hot levels of M&A activity, you can be sure
that recruitment agency profit levels make new markets attractive for
aggressive agency owners with deep pockets or strong credit ratings.
recruitment agency blogger, Jonathan Rice (owner of rec-to-rec firm,
Rice Consulting) for his incisive and witty weekly blog
The Whiteboard on all things to do with the NZ recruitment scene.
A couple of
growth in the numbers of recruitment agencies in the local market,
especially the influx of overseas operators hanging out their shingle or
buying locally-owned agencies.
in the NZ economy and the recent Statistics New Zealand Labour
December 2015 quarter appears to strongly support the positive
Change from Dec 2014
-0.7 percentage points
-1.0 percentage points
Total weekly paid hours
Wage inflation (since Dec 2014)
5.3% is the lowest unemployment rate since March 2009 (when
it was 5.2%). This fall reflected 16,000 fewer people being
unemployed over the quarter.
Over the 2015 year, the number of unemployed men was unchanged , while
the number of unemployed women was down 10,000 .
In the year to December 2015, the unemployment rate for the North
Island fell 0.6 percentage points, to 5.6%, while that for the
South Island was unchanged, at 4.1%.
The unemployment rate for Māori fell 1.6 percentage
points to 10.6%in the year ended December 2015 The unemployment rate
for Pacific peoples dropped over the 2015 year to 9.7% (from
11.4% a year earlier)Highlight 2: Auckland construction industry recruiters are probably
driving flash new cars
Annual employment growth in Auckland increased 2.9% in the December
2015 quarter, after dropping to 1.5% last quarter. This came from
23,100 more people being employed in Auckland over the year
The construction industry was the largest contributor to annual
employment growth, with 27,500 more people employed over the year to
The majority of construction employment growth was in Auckland, with
18,900 more people employed over 2015.
Technicians and trade workers also had a large employment growth,
with 20,800 more people employed in this occupation group over the
year.Highlight 3: Wages growth continues to beat inflation growth
In the year to December 2015, prices of goods and services bought by
households, as measured by the consumers’ price index (CPI)
increased 0.1% – the lowest annual increase since 1999.
The Labour Cost Index salary and wage rates (including overtime)
increased 1.5% over the same period. The bad news for employees is
that this is the lowest annual increase since the March 2010
Wage inflation has now been higher or equal to the CPI for more than
four years.Lowlight 1: Labour force participation rates continue to drop
The labour force participation rate continued to decline from a
record high in the March 2015 quarter . This is the third quarter
in a row in which labour force participation has fallen.
This continuing decrease in labour force participation was partly
due to more retirees (up 31,500), and more people at home but not
looking after children (up 15,400).
One of the key statistics driving recruitment agency growth is the
‘Filled jobs’ category. A 2.7% annual rise over the most recent 12 month
survey period (January 2015 – December 2015) comes on top of a 2.5% rise
in the 12 month period, January 2014 – December 2014 and a 1.9% rise in
the 12 month period, January 2013 – December 2013.
If this New Zealand ‘Filled jobs’ growth continues its current momentum,
you can sure that there will be plenty more upcoming Kiwi recruitment
agency growth and acquisition activity worth writing about on The
Whiteboard … and an increasing number of Kiwi recruiters driving flash
NZ employment update: First fall in
Australia confirmed as New Zealand’s
poor jobs cousin