NZ has near-record low unemployment, severe staffing shortages so why are some Kiwis still struggling to find work?

"It's a workers' market". 

That's the sentiment from experts, employers and industry leaders as Aotearoa grapples with widespread and severe staffing shortages. 

Given the lack of workers, one would be forgiven for thinking getting a job would be a walk in the park.

But several Kiwis Newshub has spoken to are desperately searching for work without luck, and it's taking a toll.

And to make matters worse, they say employers rarely even reply or acknowledge their applications. 

Wellington man, Mark, has been unemployed for five years after he was medically retired from his public service role because of mental health issues. 

The 45-year-old spent several years recovering and started looking for work at the start of the year. But despite having multiple qualifications and applying to more than 200 jobs, he can't land a role.  

The struggle has proved a frustrating, confusing and depressing experience for him given the country's low unemployment rate. 

Aotearoa's unemployment rate hit 3.2 percent in the fourth quarter of 2021 and again in the first quarter of this year. It's the lowest it has been since 1986 and as a result employers across the board are crying out for staff.

The lack of staff means companies are competing for a small pool of talent and are increasingly being forced to offer bonuses and other incentives pushing wages up. 

Tourism, healthcare and hospitality have been hit particularly hard by the shortages but nearly every industry is feeling the impacts. 

And while New Zealand's borders are open, international workers are in high demand with Kiwi businesses competing with companies from around the world.

For Mark though, the tight labour market doesn't appear to be helping. The 45-year-old has a Bachelor of Arts in geography, which he admits probably isn't very helpful. He's also completed an IT course and is a certified security guard. 

Along with his qualifications, the Wellingtonian isn't fussy - applying for a wide cross-section of jobs from public service to retail and even a role in a bus dispatch centre.

"I've applied for a few jobs just stacking shells and stuff and a few security jobs as well but they've come back saying no, so I don't know what to make of it," he told Newshub. 

Mark said he's applied to close to 200 jobs this year alone and has only had one offer - which would have left him with less money than he currently gets on the benefit. 

"I did get offered one job in security but it was only going to be 30 hours and it was going to be about an hour away from where I live. It wasn't worth it because I was going to be earning less money than I would have on the benefit."

To add insult to injury Mark said he often never hears back about job applications, something he can't understand when so many businesses are desperate for staff. 

"It is frustrating. I don't know what to make of it. I don't know if I'm applying for the wrong jobs, I don't know."

When he's put the effort into applying for a job and doesn't even hear back it puts him off the company, he revealed. 

"I get more frustrated when I don't hear back after an interview. That frustrates me because I've taken the time and effort to go to an interview. 

"It doesn't upset me so much if I've just applied for a job online and I don't hear back because a lot of those companies are quite busy. But certainly, I get frustrated when I've been for an interview and I don't [hear anything back], it has happened quite a few times," he added. 

Mark can't understand what he's doing wrong and feels like he's between "a rock and a hard place". 

"It's very frustrating and it gets depressing as well," he said. "I've tried updating my CV but another problem is I can't really afford to get a career counsellor or anything. I feel like I'm stuck in a rut." 

And it doesn't just seem to be a Wellington issue. Newshub recently spoke to Northland-based Andy who has applied to at least 50 jobs this year without any luck. 

The 61-year-old stopped working in 2018 due to an injury. He spent several years on ACC recovering but is now keen to get back into work as the cost of living rises and the money he gets isn't going as far as he would like. 

He's also sick of sitting around at home so after the pandemic started to calm down, he began searching for a job. 

Andy is a certified forklift driver, has his class 2 truck licence and has completed a first aid course. But despite that, he can barely get a response from the many jobs he's applied for. 

His unsuccessful search has left him fed up and confused. 

Despite applying to 200 jobs, Mark can't find work and he doesn't understand what he's doing wrong.
Despite applying to 200 jobs, Mark can't find work and he doesn't understand what he's doing wrong. Photo credit: Getty Images

Mark and Andy aren't alone. University of Waikato associate professor of economics Michael Cameron told Newshub thousands of people aren't working when they want to be despite low unemployment. 

Cameron said staffing shortages don't necessarily mean everyone will find work easily because often there is a mismatch between the workers needed and those available. And location also plays a part, he added. 

"It takes time to match people up with jobs. So even if you've got people who are looking for work and you've got employers who are looking for workers, and even if the workers have the right skills and are in the right locations, it still takes time for that matching up to occur," he said. 

"In the meantime, you've got some people who are still looking for work and they're applying and going through the process of interviewing and all of that."

But Cameron said for Mark and Andy, who have both been looking for work for some time, it's more likely they don't have the skills or experience employers are looking for.  

Their struggles could also be exacerbated by businesses being hesitant to take a risk on an employee because, compared to other countries, it's very difficult to get rid of workers in New Zealand. 

Cameron said because of this companies often prefer to be understaffed than take a risk on an employee. 

"Employers are looking for people with the right skills and the right experience for the position they've got. So for unemployed people who don't have those skills or experience, they're going to find the employers are going to find it a very hard ask to take them on."

While not all Kiwis will be able to waltz into a job without much effort, there are ways to improve your odds. 

Trade Me Jobs spokesperson Patrick Cairns told Newshub a short and punchy CV is the best way to go. 

"Six seconds is the average time spent reviewing a CV so you need to stand out, and quickly. Include a brief summary upfront that highlights your personality, attitude, experience, and skills. We recommend also creating a job profile so you can sit back and let employers find you," Cairns said. 

Other tips include tailoring the application to the role and always including a cover letter - no matter how annoying they can be.  

Getting someone else to check your application is also a good idea, Cairns added, along with being persistent and resilient. 

"Getting a job takes hard work. Don't give up and don't forget to follow up with the hiring manager. If you’re not successful, ask for feedback so you know what you might need to work on," he said. 

"Remember you don't have to have every requirement an employer is looking for, but ensure the role is relevant to most of your skillset."