Otago Daily Times

Otago Southland PSI up 6.5pts

- SIMON HARTLEY

OTAGO and Southland’s services sector has experience­d an activity boost in November as the hospitalit­y industry prepares for its peak summer season.

However, staffing issues continue to be a thorn for the sector and Immigratio­nNZ is being asked to redefine categories to allow more people to take on work in Otago and Southland.

Otago Southland’s score in the BNZBusines­sNZ monthly performanc­e of services index rose from 59.3 in October to 65.8 in November, points above 50 denoting expansion, and below, contractio­n.

Nationally, the index average eased back from October, falling from 55.4 points to 53.5.

Otago headed up the four regions surveyed with its

65.8 score, followed by northern North Island on

59.9, lower North Island at

58.5 and upper South Island, Canterbury­West

Coast at 52.9.

Otago Southland Employers’ Associatio­n chief executive Virginia Nicholls said November’s

65.8 score was more than the average from the past year and was only just below the correspond­ing time last year.

The regional breakdown of subcategor­ies has orders/new business, activity/sales levels and employment levels all scoring above 60.

Businesses providing services to the constructi­on industry continued to be busy and 59% of comments from survey respondent­s were positive, she said.

‘‘[However] finding staff with suitable skill levels has reached a critical level in our region,’’ Mrs Nicholls said.

As with recent reports on the southern manufactur­ing sector, services, too, are finding it difficult to recruit qualified employees.

‘‘There are calls for Immigratio­n NZ to add some new categories for the essential skills work visa in our region, and allowing some of the staff to stay for longer,’’ Mrs Nicholls said.

She also reiterated concerns about how long it was taking to process some of the work visas.

The service sector, which amounts to almost twothirds of the economy, includes suppliers to constructi­on, all facets of hospitalit­y and tourism and financial services providers.

The Queenstown marathon was once again a ‘‘significan­t event’’ for the hospitalit­y and tourism sectors in Central Otago, Mrs Nicholls said.

‘‘In the hospitalit­y industry at this time of year there is a

 ?? PHOTO: IMAGES
GETTY ?? Of concern . . . Attracting and keeping staff is high on the list of issues facing Otago and Southland businesses in the service sector.
PHOTO: IMAGES GETTY Of concern . . . Attracting and keeping staff is high on the list of issues facing Otago and Southland businesses in the service sector.

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