Omicron will only add to looming workforce shortages already faced by key New Zealand industries

Abstract

The Omicron wave about to wash across New Zealand will exacerbate an already tightening labour market. High employment and ongoing border restrictions mean regional labour forces are nearing peak capacity – and the country is running out of time to find solutions. With border restrictions in place for much of the past two years, the domestic labour market has been the main source of human capital – and will likely continue to be for some time. Combined with an ageing workforce, this is causing labour market tightening in most industries. Some form of intervention will be required to find skilled workers to fill the gaps emerging in specialised jobs – especially as the economy grows and older workers retire.