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More action needed on skills shortage

Industry expert says: “We simply do not have the labour market supply to meet the skills in demand.”
Posted on 13 October, 2022
More action needed on skills shortage

The Motor Trade Association (MTA) says measures to boost immigration levels will do little to tackle the “chronic” labour shortage facing the automotive sector.

The government has unveiled the reopening of the skilled migrant category from mid-November, along with consultation to start on a new system for migrants who fall outside current programmes.

The policies were announced by Michael Wood, Minister of Immigration, in Auckland on October 12, but Brian Anderton, advocacy manager for the MTA, believes the news brings little cheer to the motor-vehicle industry.

“We know the labour shortage is the number-one issue keeping member businesses up at night,” says Anderton. “We simply do not have labour market supply to meet the skills in demand. We have raised this with immigration officials and recently with Minister Wood.

“Many automotive businesses are at least one staff member short and, in a lot of cases, several members short.”

The MTA says the sector is doing what it can to address the shortage by hiring locally, and offering the best wages and conditions it can. Young Kiwis are entering the industry, but not in enough numbers.

Anderton, pictured, says: “It’s clear we still need workers from overseas to help fill roles, support our essential industry and, in fact, help the government achieve its employment and climate-change objectives.

“The ‘Back to the Future’ announcement about reopening the skilled migrant category does little to help the sector because, realistically, it’s very hard for automotive roles to qualify.”

He adds that’s despite the automotive sector being a huge contributor to the economy, coming in at some $3.5 billion in 2021, and that contribution needs to be given appropriate weight in future immigration settings.

“Automotive workers need to be recognised as skilled and valued as important,” says Anderton. “The glimmer of hope for our industry is the promise of consultation. We hope the government undertakes that in good faith, listens to our sector and acts decisively to smooth the pathway for overseas workers.

“A strong automotive sector is essential for this country’s health and future, and addressing the labour shortage must be a top priority. We welcome to opportunity to work with the government on this.”