Weekend Herald

Since when was work an optional extra?

- Max Whitehead ● Max Whitehead is chief executive of the group Small Business Voice

Have you noticed? Our cafe service has slowed, more flights and buses are cancelled, and shelves are often empty.

Is Covid still responsibl­e or does that no longer wash?

The real reason is, businesses can no longer source enough staff.

Strangely, other OECD (Organisati­on for Economic Cooperatio­n and Developmen­t) countries have the same problem. Internatio­nal headhunter­s are now arriving on our shores in droves, poaching talented workers with tantalisin­g salaries and conditions.

Kiwi employers are desperatel­y responding with work-from-home policies, flexible hours, and dramatic pay increases. Some employers even offer cash bonuses if key staff stay longer than a further six or 12 months.

Where have the workers gone? One theory goes hand-in-hand with what we observe in the education sphere. Educators tell us children and parents are treating school attendance as optional, and some early childhood centres and schools are reporting that roles have halved since the Covid lockdowns.

Is it possible that a large proportion of our productive workforce are preferring to stay at home to educate and care for their children?

Tertiary educators are also reporting low enrolment in universiti­es and polytechni­cs.

Many of our high school leavers and younger adults are taking advantage of the Bank of Mum & Dad, preferring to take an OE than to start work or pursue higher education.

Others are choosing an early start to their careers and accepting jobs offered by desperate employers to garner financial freedom.

As for the 25- to 29-year-olds, it is reported that fewer are employed in New Zealand now than in the time before the Covid pandemic.

This is supported by our net migration figures showing that 10,700 more people left the country in the year ended May 2022 than arrived, resulting in a net loss for our overall population and productive workforce.

In a desperate attempt to keep their businesses afloat, employers are now desperatel­y recruiting retirees and school leavers to fill the vacated roles.

Unfortunat­ely, these workers are less prevalent and not as productive as the previous incumbents which explains why the standard or availabili­ty of our goods and services have declined since before Covid lockdowns.

While employers are struggling, our Government’s current legislatio­n programme has dished out increased minimum pay, doubled sick days, and extra paid public holidays.

Along with this year’s pending income insurance and fair pay laws, all these changes impose massive cost increases for employers.

And this follows four months or more of mandatory lockdowns where many employers were unable to earn an income.

The New Zealand Council of Trade Unions a few weeks ago proposed a trial four-day week with five days’ pay.

That would mean a 20 per cent drop in New Zealand’s productivi­ty when it was already recognised as one of the least productive countries in the OECD.

Our Government, unfortunat­ely, perceives businesses to be big powerful employers with endless amounts of money — but the opposite is true.

Statistics NZ tells us only 3 per cent of all New Zealand enterprise­s employ more than 20 staff while the other 97 per cent are either small employers or just self-employed Kiwi battlers desperatel­y trying to get ahead as independen­t contractor­s.

While our Government busies itself with creating more complicate­d employment laws, our talented employees are disappeari­ng as well as many of our struggling businesses.

The question remains: Where have all the workers gone? Our theory proposes that, since lockdown, people perceive work and education as optional and have decided to put up their feet. Do you share this view or do you have another theory as to where all the workers have gone?

 ?? Photo / Greg Bowker ?? While Kiwis head off for their OE, the inflow of migrant workers has been restricted.
Photo / Greg Bowker While Kiwis head off for their OE, the inflow of migrant workers has been restricted.

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