New Zealand’s low unemployment rate is causing problems for businesses in the nation’s capital.

50 percent of businesses are finding it harder to find staff now than just three months ago, according to Wellington Chamber of Commerce.

Chamber CEO Charles Finny says the Wellington job market is particularly tight and there has been a significant fall in the number of available people of working age. Unemployment in Wellington is now just 2.5% (non-seasonally adjusted). My Finny commented:

“Wellington employers are finding it harder to find and retain staff. Not only are employees hard to find, but businesses are having to pay more to match high paying government departments.”

Average hourly earnings for government administration and defence workers grew 8.3% over the year, more than any other sector.

New Zealand Average Hourly Earnings
(not including overtime)
December 2007

“Immigration rules need to be adjusted urgently to allow increased migration to meet employer demand,” Mr Finny concluded.