Business group warns skills crisis is now employers' top concern
The Employers and Manufacturers Association (EMA) has called on the next government to address a deepening workforce readiness crisis and resist the urge to overhaul employment legislation, as New Zealand gears up for a general election in November.
The EMA's 2026 Election Policy Directives, released on Monday, identify workforce skills and the stability of employment law settings as some of the most pressing issues facing the business community.
The directives reveal a striking shift in employer sentiment around workforce readiness. Just a few years ago, only around 35 to 40% of EMA members flagged work readiness as a key concern. That figure has since climbed to above 60%.
"The skills and work readiness of our emerging workforce is possibly our biggest handbrake on productivity," the document states.
EMA Head of Advocacy Alan McDonald was blunt about the scale of the problem, pointing to rising numbers of young people who are not in employment, education or training (NEET).
"The number of NEETs in the 18–24 age bracket continues its concerning rise," McDonald said.
"There is no doubt one of the drivers behind these numbers is a reluctance by employers to hire those new faces. They are simply not ready for the workforce, lacking many basic skills, and struggling with the simple disciplines of turning up, listening and engaging in the workplace."
The EMA is calling for an integrated workforce and skills...
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