Alan McDonald: Employers and Manufacturers Association Head of Advocacy on Auckland job ads seeing its biggest rise in four years

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The Mike Hosking Breakfast 3 min 2 speakers 6 chapters transcribed 1 day ago
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What are the latest job ad trends in Auckland and New Zealand?

Mike Hosking 0:00
Right, another read back home from New Zealand Inc. and our ongoing economic recovery. This one for the jobs, last cab off the old recovery rank, of course, the jobs. Ads are up zero point six percent in August, which is nine point seven percent higher than a year ago, led by you ready for it? Auckland, biggest rise in more than four years. Alan McDonald is EMA's head of advocacy and strategy and is with us. Alan, very good morning to you. Are you sort of seeing and feeling this in Auckland? Would you have picked a number like that?

Why is Auckland’s unemployment historically higher than the national average?

Alan McDonald 0:26
Uh no I wouldn't, but it's really encouraging when you see the numbers that have consistently had Auckland's unemployment uh higher than the national level. So I think that's a uh that is a good positive sign. And hopefully that continues later this morning when we get the GDP number.
Mike Hosking 0:40
What's your pick? You got a feel for that? I mean it'll be in growth though, won't it, which is good in and of itself, I would have thought.
Alan McDonald 0:46
Yeah, look, uh I I think it's widely expected to be, you know, very low, sort of naught point one, naught point two. But that's against the background of the Gulf War and and the fuel shortages. And if it's positive then
Mike Hosking 0:57
that's a positive.

How might today’s GDP figures influence the job market outlook?

Mike Hosking 0:58
I reckon. So as far as the jobs are concerned, one month does not a summer make. Uh are we on a a ride here? Are we going places?
Alan McDonald 1:06
Well, I think the key word in there is summer. So you look at those sectors that are uh increasing hospo, tourism, retail and consumer products. Now hospo and tourism obviously we're coming into peak season. That that kinda kicks off at Labour weekend when we all take a collective breath and go, Let's hit the beaches again, so that's great. Um and those sectors tend to soak up.

Which sectors are driving the current hiring surge in Auckland?

Alan McDonald 1:26
uh large numbers of unemployed. The other big soaker, if you like, being construction, which is still lagging.
Mike Hosking 1:31
Yeah, indeed. So d it soaks up unemployed. Does it also drive to a degree of this continues migration because we will need more people, presumably?
Alan McDonald 1:40
Well, you know, hopefully w we always want to see Kiwis hired first and if uh they're keen and willing and able to to get into those jobs then you know that's that's a s that's a stepping stone into something else, you know. For young people I think in particular it's critical to have a little bit of um track record behind you of of being a good employee. So it'd be nice to see those people get soaked up 'cause the the NEETs are still a big number.
Mike Hosking 2:05
They are indeed.

Is construction lagging and could migration help fill job gaps?

Mike Hosking 2:06
They're far too high. The regions there are only four regions down, would you still argue that this this commentary we're hearing that, you know, there I I just can't get my head around it. There seems to me to be enough evidence here to prove a recovery's wrong, but you still get the feedback going, I'm not seeing it. Is that part real?
Alan McDonald 2:25
Well I think you know, when we measure recessions we s we say three quarters in a row and we're technically in a recession. Well, if we get a positive number for GDP today, that'll be three quarters in a row where we've had growth. So I think that if we're using the opposite measure for a recession, I think three positives in a row we can safely say we're into some kind of growth mode. Well let's hope so.
Mike Hosking 2:46
Ellen appreciate it.

What does a positive GDP reading mean for New Zealand’s recession status?

Mike Hosking 2:47
Ellen Macdonald, who's the EMA's head of advocacy and strategy. Mike, I'd like you to ask Nicola Willis how she plans to break up the supermarkets that are essentially individually owned and part of a cooperative. It's a very fair point. The nuances in the Comcom, the Commerce Commission will do the review. Uh they'll be breaking up the cooperative north and south. They won't be making anyone sell their supermarket. So how materially and tangibly it works on the ground is of course a very
Alan McDonald 3:13
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