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Employment in Otago

Matt French finds out what employment opportunities may draw emigrants to a region of New Zealand most famous for Dunedin’s historic and natural charm

The Otago region of New Zealand's South Island is well placed to make the most of the country's increasing international tourist numbers. Many visitors are attracted by the adventurous pursuits offered by Queenstown, the ski fields around Wanaka and – for those seeking a more relaxed vacation – Dunedin which offers a rich Scottish heritage and a beautiful, wild coastline. Unsurprisingly, then, tourism has played an increasingly important part in the local economy in recent years and this is set to continue. However, would-be emigrants  should also consider the area as there are employment opportunities there – more than just those offered in the tourism sector.

Facts and figures
The Otago region is the second largest in New Zealand, making up about 13 per cent of New Zealand's entire land area. The region is comprised of the districts of Waitaki, Central Otago, Queenstown Lakes, Clutha and the city of Dunedin. In 2005, the population of the Otago region was about 196,600, or 4.8 per cent of New Zealand's total, with 60 per cent living in Dunedin. The population has been rising in recent years. Additionally, from 2001 to 2006, employment in the Otago region increased by around 7,700 jobs, or just over 10 per cent.Though this rate of growth is less than the national average of 15 per cent, the economy nonetheless shows signs of growth and there are more encouraging figures in terms of unemployment.

The unemployment rate in Otago, as in the country as a whole, is at an historical low. This is because the recent economic growth has stimulated the creation of many new jobs – centred on domestic industries such as the retail trade, construction and property and business services. As of March 2007 – a year after the 2006 census – unemployment in Otago stood at 3.2 per cent, less than the 3.7 per cent rate seen nationwide. It is also estimated that economic activity in the Otago region increased by 1.8 per cent – compared with 2.4 per cent growth nationally – in the same period.

Important industries in Otago
The largest employing industries regionally are retail, representing 14 per cent of regional employment, manufacturing with 11 per cent of the workforce and health and community services making up 10 per cent of the total employment figure. Health and community services jobs are mostly in hospitals and nursing homes, and community care services. Retail trade jobs are focused on supermarket and grocery stores and motor vehicle servicing, while manufacturing jobs are focused on meat and meat product manufacturing, and also publishing. Meanwhile, between 2001 and 2006, property and business services added more jobs than any other sector (1,878 jobs), followed by construction (1,713 jobs) and accommodation, cafes and restaurants (1,626 jobs).

Dunedin hub
Dunedin is the largest city in geographical size in New Zealand – at 3,300 square kilometres – and is the second most populated city in the South Island, with 122,400
residents (2005 figure). It spreads from rural farmland to the ocean, with the majority of its residents living in the urban areas of Dunedin and Mosgiel. Unsurprisingly, it is also where the region's major employers are centred.

The main industries contributing to Dunedin's GDP are property services, education, business services, health services and food manufacturing. Key manufacturing industries in Otago generally tend to be based in Dunedin City and surrounding areas. Large businesses in manufacturing include familiar names – such as Cadbury Confectionery – as well as brands less-well known to us in Britain like Donaghys, Farra Engineering, Ravensdown, Fisher and Paykel and Milburn Lime. Meanwhile, communication, government administration and tourism all contribute over NZ$100 million each to the city's overall GDP. "Health, engineering and university staff have a constant demand for workers," Peter Harris, manager of the economic development unit of Dunedin City Council says. Several development projects in the city means tradesmen are also highly sought after, and this is likely to be the case into the future. "There is strong construction from the University and hotels," says Harris, "and there is also a new stadium in the planning stages."

Dunedin's main employers are the University of Otago and the Otago District Health Board, both of which employ more than 2,000 people. The city has a large area devoted to tertiary education, with the University of Otago, Otago Polytechnic and Dunedin College of Education all situated in North Dunedin. The university alone has more than 20,000 students. However, British teachers and academics should be prepared to face stiff competition for education vacancies in Dunedin one recruitment consultant suggests.
"There is a high number of applicants for vacancies," Vicki Campbell, Recruitment Team Leader at Education Personnel New Zealand says. "Schools tend to be able to source their own teachers." However, as with elsewhere in New Zealand, Dunedin does experience skills shortages in its labour force, which has even been identified as constraining the growth of one-third of the city's businesses. Those sectors experiencing the most difficulty include apparel and fashion, and trades and engineering industries. Of those who reported recruitment difficulties in a 2005 survey, just under half (46 per cent) felt that their long-term business growth would be affected. Bad news for them, but potentially good news for emigrants seeking employment. "There is strong demand in a number of professions," Harris says, "And UK migrants make up a high proportion of migrants. "There are also many business opportunities here and a very supportive business community," he adds. "We have had a number of UK people set up there businesses here and with broadband connections they are still maintaining their international contacts. "We also have a settlement support service that helps migrants settle in our city. One part of this is service is a website – City of Dunedin."

Employment elsewhere in Otago
The agriculture, forestry and fishing industry is an important employer in this part of New Zealand (accounting for 9 per cent of regional workers). This is especially the case in the Central Otago District, Clutha District and Waitaki District. A large number of employees in Clutha District and Waitaki District work in the sheep and dairy farming industries, while the horticulture and viticulture industry is especially important in the Central Otago District, though employment tends to be seasonal. The wine produced in Central Otago is gaining in reputation worldwide and as a result specialist workers are likely to continue to be in demand to support this growing market. The seasonality of this industry has created problems for employers in finding workers in the Central Otago district. In response, the Seasonal Solutions Central Otago Ltd grower-owned co-operative has been formed, with the aim of better aligning local workers with the needs of local employers and also to market the horticulture and viticulture industry to people looking for employment nationally and internationally.

Alexandra is Central Otago's largest town and administrative centre. However, Cromwell is the district's most rapidly developing town and the focal point of the wine industry. Cromwell's proximity to Queenstown, and developing tourism facilities, assures its future as a tourist destination. Queenstown is an alternative destination when considering where to emigrate. The town is known as one of the adventure hubs of the world, with everything from skydiving to bungee jumping offered in the vicinity. This may not seem to represent much of an opportunity for emigrating Brits. However, a growing reputation means  more workers are required to develop the town's infrastructure. "Queenstown is going through a building boom at the moment, and this sector is screaming for staff," says Nathan Howie, editor of website Queenstown.com.
"The main players are Naylor Love, Rilean Construction, SMG Properties and Amalgamated Builders. "Then there are the major hotels: The Millennium, The Heritage, Rydges Hotel and Sofitel Queenstown." The city is also one of the top destinations for both wintersport-loving Kiwis and tourists from overseas. One of the larger employers is NZ Ski.com  – the trading name for the two major skifields in Queenstown, Coronet Peak and The Remarkables – though the majority of staffing requirements are during the winter months. In addition to these centres for employment, other development projects throughout the Otago area are likely to affect job requirements. "A number of energy-related projects – including wind farms, synthetic fuels, and so on – will provide additional opportunities," Duncan Simpson, Chief Executive of Otago Southland Employers' Association says.

Effects of tourism
The tourism industry is hugely important to the Otago economy, and this is likely to remain the case in the future. This is supported by tourism forecasts, including a projected 24.3 per cent increase in visitor nights in the Queenstown area by 2012. Tourism already comprises a massive 24 per cent to the Otago economy. This figure is made up of the money visitors spent in local accommodation, restaurants and also that which they contributed to the retail trade. The increase in tourist trade has been helped in no small part by increased flights into Dunedin and Queenstown International Airports. The expansion of these terminals has also had a positive effect for the construction industry.

Employment in the tourism industry in Otago has also increased in recent years to cope with the increased demand, though it is mostly seasonal and centred around Queenstown, Wanaka, Dunedin, Arrowtown, Balclutha and Cromwell. However, as a result of the falling unemployment rate throughout Otago – coupled with increasing demand by employers – people now have a wider range of choice in terms of the types of work they do and are turning to more reliable and permanent jobs.
Subsequently seasonal employers in Otago are finding it harder to find staff.

Summary
There are employment opportunities for emigrants in areas other than the major North Island employment centres of Auckland and Wellington, and even outside Christchurch on the South Island. "Virtually every type of skill is in demand," says Simpson. "But to pick a few (jobs most in need) anything to do with healthcare, such as nursing, qualified tradespeople, tourism and hospitality and ICT would all be towards the top of the list. "Those who feel more comfortable in a city environment would find Dunedin, with its population of over 120,000, perhaps more to their liking, but there are locations to suit every taste and life style.  Housing is comparatively more expensive in Central Otago – a result of both land availability and the influence of iconic resorts such as Queenstown and Wanaka." "A total of 520 Britons who came to New Zealand as skilled migrants between 2004 and 2007 chose Otago as the place they would settle," adds Susan Grant of the New Zealand Department of Labour.

This means Otago is in need of workers, just as the rest of the country is, but has attracted less workers, so far. In order to support economic development skilled emigrants are likely to be welcomed here for the foreseeable future. In addition, as economies grow there inevitably becomes a need for more clerical staff and professionals such as lawyers to facilitate the changes. Therefore, looking at local government and recruitment websites for Otago on a regular basis to see if your skill is in demand, is a good idea.

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13 May 2008