Priority sectors
On this page
We have identified 7 priority sectors for our first Regional Workforce Plan (RWP) based on:
- Contribution to filled jobs and GDP
- Current and future skills shortages.
The information below provides a snapshot of the current and future workforce and challenges specific to that sector. We acknowledge that there is more we need to understand about our priority sectors and have identified this as a key action in this plan.
Construction
[see appendix 2 for definition]
Why it’s a priority
- Large employing sector with projected strong growth
- A key contributor to regional priorities such as housing
- Construction jobs are particularly important in Kāpiti (15.9% of total filled jobs in 2019, and 9.1% of GDP)
Current filled jobs
24,400 filled jobs in our region, across a wide range of occupations (StatsNZ)
Proportion of workforce that are migrants
9.4% of the construction workforce (MBIE Migrant Employment Data, November 2021)
Qualification levels of workforce
- No qualification: 14%
- Levels 1-3: 35%
- Levels 4-6: 33%
- Level 7+: 9%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Projected growth – 2020-2035 filled jobs
- Projected peak workforce of 32,000 over 2022 (see: https://wip.org.nz/labour-forecast/)
- Estimated annual growth between 2020 and 2035 of 0.2% per annum
Challenges and opportunities
- Demand primarily driven by population growth, as well as business. Housing supply and affordability are priorities in the Wellington Regional Growth Framework with a wide programme of initiatives planned and/or underway. Examples include the Eastern Porirua Regeneration project with plans for 1,800 new homes in the short term, with 11,000 likely needed in the next 25 years in the wider Porirua area, and the Lower Hutt $455 million Riverlink project which is projected to provide 1,750 houses and apartments.
- A special focus on Iwi and Māori housing is also marked as priority.
- A growing diversity within the workforce with more women, Māori and Pacific peoples, and older people training for the trades. Needs to be a continued focus on attracting people to the sector.
- The sector has been at risk of boom and bust cycles in the past, and it’s important that training ensures that the workforce has transferrable skills enabling workers to ride out and adapt to any such cycles in the future.
Infrastructure
Why it’s a priority
- Accounts for around 7,000 roles in the region
- A key contributor to regional priorities such as water and transport
- Skills gaps and strong demand for skilled workforce going forward
- Planning and initiatives underway are driving very large infrastructure projects which will require workers from over 19 different trade areas, and roles from concrete pouring to quantity surveying.
- This includes strategic roading networks, the Riverlink project in the Hutt Valley, and the $6.4 billion Let’s Get Wellington Moving project. Much larger initiatives are likely to come out of the Wellington Regional Growth Framework plan longer term, such as an East-West connection transport corridor.
- The Hutt City Council is partnering with Wellington Water, Waka Kotahi, Weltec-Whitirea, Hutt Valley Chamber of Commerce, Fulton Hogan and Mana Whenua on infrastructure jobs and skills training; work included a jobs forum with all partners in November 2021.
Current filled jobs
Infrastructure roles fit under a number of categories so estimates must be used
- 2,200 filled jobs in other heavy and civil construction
- 1,500 filled jobs in road and bridge construction
- 3,600 jobs in engineering design and consultancy
Proportion of workforce that are migrants
13% of the heavy and civil engineering construction industry (MBIE Migrant Employment Data at November 2021)
Qualification levels of workforce
Note: this data is as for construction
- No qualification: 14%
- Levels 1-3: 35%
- Levels 4-6: 33%
- Level 7+: 9%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Projected growth – 2020-2035 filled jobs
Heavy and civil construction projected increase of 1.4% per annum
Challenges and opportunities
- The 2021 Draft New Zealand Infrastructure Strategy, Rautaki Hanganga o Aotearoa, emphasises the need for a strong construction sector, noting that a major factor in low productivity is a labour shortage, and calls for a national infrastructure skills plan.
- Current and projected skills shortages across the sector and low productivity.
- Limited diversity – women only account for 2.5% of apprentices nationally.
Digital technologies sector
Why it’s a priority
- Jobs in this sector are high value, coming under both the ‘Professional, Scientific and Technical services’ sector, and the ‘Information, Media and Telecommunications’ sector, 1st and 6th respectively in industry GDP per person for the region.
- Nationally there were 98,583 people employed as IT professionals in 2019 with a median salary of $92,250.
- Nationally, 4,462 new IT jobs were created in 2019, and of all jobs in these sectors 14% sit in our region, across a rapidly growing eco-system of small to medium exporting digital businesses, a large public sector, and large well-known businesses such as Xero and Datacom.
Digital Skills for Our Digital Future(external link)
Current filled jobs
- 15,000 filled jobs in ‘ICT occupations’, mostly concentrated in Wellington City
- About 3,200 filled jobs relating to motion pictures
Proportion of workforce that are migrants
- 14% of the computer system design and related services industry
- 18% of the motion picture industry
MBIE Migrant Employment Data at November 2021
Qualification levels of workforce
Information media and telecommunications industry
- No qualification: 3%
- Levels 1-3: 23%
- Levels 4-6: 16%
- Level 7+: 49%
Professional, scientific and technical services
- No qualification: 3%
- Levels 1-3: 19%
- Levels 4-6: 13%
- Level 7+:59%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Projected growth – 2020-2035 filled jobs
The ‘Computer Systems Design and Related Services’ (a subset of Professional Scientific and Technical services) is expected to grow by 2.6% per annum (Infometrics industry projections data). The motion picture sector is expected to remain stable.
Challenges and opportunities
- A number of new and existing businesses in the sector, as well as many public sector roles.
- The gaming sector is increasingly important and growing quickly, based mainly in the Hutt Valley.
- High numbers of new jobs being created, with highest demand is likely to be in the areas of machine learning, software development, data analysis, and software architecture.
- Current skills shortages in the sector.
- Several good education and skills providers for the sector.
Health: Kaiāwhina to nursing
Why it’s a priority
- Overall health care and social assistance is the 3rd largest industry in our region by filled jobs and is the 4th biggest growing sector, reflecting our growing and ageing population
- DHBs are the biggest single employers in the region, with around 10,000 employees
- Work is underway at a national and DHB level to address shortages across the regulated health workforce, for example GPs and technicians. We have chosen to focus on two key areas where local connection and co-ordination can be best leveraged: nursing and the unregulated care workforce, also known as kaiāwhina, both of which are experiencing significant shortages.
Current filled jobs
- There are 27,000 filled jobs in healthcare and social assistance
- Around 8,800 filled jobs in midwifery and nursing professionals in our region – the biggest single group of workers in the health workforce, and 4,941 work as personal carers and assistants
Proportion of workforce that are migrants
- 19% of the residential care services industry
- 2% of the health care and social assistance industry
MBIE Migrant Employment Data
Qualification levels of workforce
Note, data only available for health care and social assistance
- No qualification: 8%
- Levels 1-3: 21%
- Levels 4-6: 17%
- Level 7+: 48%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Projected growth – 2020-2035 filled jobs
- Overall growth in healthcare and social assistance of 1.5% per annum
- Strongest projected growth in residential care services at 2.6% per annum
Challenges and opportunities
- Current and persistent skills shortages across all levels and role types.
- Strong reliance on migrant workers to meet skills shortages.
- Ageing population will drive growth in the sector.
- High turnover of workforce in aged care sector and most people exit the sector entirely
- The kaiāwhina workforce is mostly employed for in-home care or by one of the aged care providers in the region (who have over 5,500 beds in the region). It is an older workforce, predominantly female, and often underemployed.
- Training is available across all levels locally, however there is not always the corresponding supervision for placements for nurses. This can limit numbers.
- The workforce does not represent the demographics of those it cares for, and more Māori and Pacific skilled workers are needed to address this. Whitireia Polytechnic runs nursing programmes including the country’s only Bachelor of Nursing Māori and Bachelor of Nursing Pacific. It is keen to develop as a leader in this field in the country.
Relevant plans
The Kaiāwhina Workforce Action Plan 2020-2025 is a partnership developed by Careerforce and the Ministry of Health. It sets out priority areas for growing and developing this workforce.
Visitor sector
Why it’s a priority
- Accommodation and Food Services is the 6th biggest sector for filled jobs in the region
- The sector is particularly important for some of our sub-regions, such as Kāpiti and the Wairarapa
Current filled jobs
Food and accommodation accounts for 22,500 filled jobs. 10,000 of these filled jobs are in cafes and restaurants
Projected growth – 2020-2035 filled jobs
Projected growth in filled jobs of 1.3% per annum
Proportion of workforce that are migrants
19% of the accommodation and food services industry (MBIE Migrant Employment Data)
Qualification levels of workforce
- No qualification: 10%
- Levels 1-3: 41%
- Levels 4-6: 16%
- Level 7+: 16%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Challenges and opportunities
- Kāpiti has identified the services economy as priority and developed a destination management plan. It is also looking to establish a learning hub to develop training for the sector. Similarly, in the Wairarapa tourism accounts for 7% of filled jobs and the sector has been prioritised for training and skills development, and a sector group set up for tourism and hospitality.
- Strong reliance on immigration to fill a variety of roles and COVID-19 has exacerbated ongoing and growing shortages. Immigration policy changes may reduce the availability of short-term migrant labour to the sector.
- The sector suffers from high turnover, which means there is an ongoing need to retrain.
- There is a lack of on-the-job training frameworks.
Manufacturing
Why it’s a priority
- A high value sector and the 4th largest contributor to GDP per person by industry. Both primary and non-primary manufacturing contribute to the region’s manufacturing output.
- A significant sector in Porirua where 27% of the workforce is employed in the industrial sector. Manufacturing is a major characterising factor of the Hutt Valley and makes up almost 12% of GDP for Lower Hutt and 10% of employment. In Kāpiti manufacturing was worth 9.1% of total GDP in 2019.
- The sector is an important employer of both Māori and Pacific peoples.
Current filled jobs
About 16,000 filled jobs in manufacturing
Proportion of workforce that are migrants
8.9% of the manufacturing industry (MBIE Migrant Employment Data at November 2021)
Qualification levels of workforce
- No qualification: 17%
- Levels 1-3: 34%
- Levels 4-6: 21%
- Levels 7+: 17%
MBIE, Detailed Regional Employment Estimates (DREE); core data from Stats NZ Census 2018 and Linked Employer Employee Data (LEED). Modelling completed by MBIE
Projected growth – 2020-2035 filled jobs
Projected growth in manufacturing of 1.8% per annum
Challenges and opportunities
- The Hutt Valley Chamber of Commerce is sector lead for the manufacturing and technology sector for the greater Wellington region.
- The Wairarapa Workforce Plan has a focus on this area and has stood up an industry sector group focussing on manufacturing (including value added food production).
- The sector has signalled that it has ongoing skills shortages, in part due to an ageing workforce, and its reliance on immigration to fill skills shortages.
Relevant plans
An Advanced Manufacturing ITP is being developed which will focus on lifting the sector’s productivity, sustainability and inclusivity, and the quality of work.
Primary sector
Why it’s a priority
- While this sector does not employ large numbers across the whole region, it is a sector which is very important to Wairarapa where it provides 10.2% of the area’s GDP, and 15.6% of filled jobs. It provides a significant economic base that supports many other businesses, as well as a cultural and social foundation for the rural community. Across the hills, Kāpiti is looking to develop its economy through innovation in its food and beverage sector, with a particular interest in sustainable foods and niche primary production.
- The primary sector stakeholder group set up by the Wairarapa Skills Leadership Group has already made some significant achievements in identify and support better training and connection for the sector
- Note the statistics below are based on data for ANZIC Level 1 Industry of Fishing, Farming and Agriculture.
Current filled jobs
5,588 filled jobs in 2021
Projected growth – 2020-2035 filled jobs
- Projected growth in filled jobs of 0.5% per annum
- Proportion of workforce that are migrants
- 8% of Agriculture, Forestry and Fishing industry
MBIE Migrant Employment Data
Qualification levels of workforce
- No qualification: 17%
- Levels 1-3: 38%
- Levels 4-6: 20%
- Level 7+: 16%
Challenges and opportunities
- Difficulty of setting up and retaining viable training provisions in rural areas
- High reliance on immigration for workers
- Negative perceptions of the sector
- Environmental challenges
- Access to tertiary training
- Limited transport options and necessity of a driver’s licence
- Distance to services and variable digital access
- Challenges of scale and viability
Relevant plans
- Food and Fibre Skills Action Plan
- Wairarapa Workforce Plan