Shannon Barlow: Frog Recruitment Managing Director on the unemployment rate

The job market's remaining tougher, for longer, than many economists were expecting. 

Unemployment's reached a ten-year high of 5.4% in the December quarter, and the broader under-utilisation rate is close to a ten-year high as well, at 13%. 

Finance Minister Nicola Willis is trying to point out silver linings, saying the data also shows more jobs have been created, and hours worked are increasing. 

Frog Recruitment Manging Director Shannon Barlow told Kerre Woodham that it’s a little early to get a clear read on the market, but there are positive signs already. 

She says there was a lift in permanent roles and businesses who were keen to hire in December, and January has been solid as well – notable since it’s normally a dead month.  

Barlow says it gives the idea that business confidence is beginning to translate into real hiring and growth decisions.  

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Kerry Wood and Morning's podcast from
News Talks, he'd be.

Speaker 2 (00:11):
As we've been discussing unemployment has reached a ten year
high of five point four percent. Finance Minister Nicola Willis
is trying to point out silver linings, saying the data
also shows more jobs have been created and ours worked
are increasing. So what is it like at the cold face?
Are there more jobs being offered? Is it getting better?

(00:32):
Are things go on the turn and on the improve?
Frog Recruitment managing director Shannon Barlow joins me, Now, very
good morning to you, Shannon. Morning a more Anna. So
what's happening out there?

Speaker 3 (00:47):
Well, yeah, it was a pretty unpleasant surprise to see
that number pop up yesterday, especially, as you say, given
the business confidence, so we're expecting something a little bit different.
But I am staying optimist, Dick. And you know, if
we can talk ourselves into a recession, surely we can
talk ourselves and to a more buoyant economy and labor market,

(01:09):
and some of that data supports that as well. I
think from a recruitment perspective, Look, it is a little
bit early to get a clean read on the market.
Things usually don't properly move until after Whititungi Day when
all the decision makers are fully back from work. But

(01:29):
we saw some really positive signs in December with a
lift in permanent roles and business is keen to hire
before the new year. And January has been solid as well,
and that's notable because it's usually a really dead month.
So it gives us the idea that business confidence is
starting to translate into some of those real hiring and

(01:52):
growth decisions.

Speaker 2 (01:54):
Well, you're quite right about the confidence that I did
have a number of people tell me last year that
they were reluctant to invest in their businesses, to grow
their businesses with prospect of a Labor Greens to Party
coalition LUMEN.

Speaker 3 (02:12):
Yeah. Well, you always do have that effect, don't you
when it's an election year, which is kind of unfortunate
for the for the rhythm of things. We're just trying
to just starting to pack up, and you will get
that indecision whenever there's an election coming through, with people
sitting on the fence about what will happen there. But

(02:35):
I really think businesses can't afford to do that. You know,
we've been it feels a little bit like groundhog Day.
It feels like this time of year. Twelve months ago
we were saying much the same things. Business confidence was
up because surely it couldn't get worse, and then well
it didn't quite play out that way for the whole year.

(02:56):
But I think we are in a clear shift now.
So again the power of talk yourselves into things. I
think if too many sit on the fence and wait
and see, that's just going to slow down that momentum
as well, and isn't going to be good for their
businesses in the long run. We've got to get on

(03:18):
with things.

Speaker 2 (03:18):
Yeah, absolutely, it'll become a self fulfilling prophecy. But I
do think the really successful business owners don't look at
outside factors. They don't, they don't wait, they just get cracking,
don't they. So where are the jobs?

Speaker 3 (03:35):
Yeah, we're starting to see it come across the board,
and usually the typical rhythm is you'll start to see
movement in sales and sales positions first typically happens, and
of course that's because you know, businesses are looking at right,
we're going to really target growth. But to do that

(03:58):
we need to be able to going out to go
out into the market, and go after new business. There
might be some that have perhaps made a change in
direction with their business or started offering new services as well,
so things like change management. We've seen a lot of

(04:19):
that comes through in HR and particularly there were you know,
there were a lot of different new legislation in that
space for businesses to get on top of. So we
did start to see an increase in in that area
as well.

Speaker 2 (04:38):
When it comes to the youth unemployment, it's always high
when things are tough. And where would you suggest that
parents or young people head in terms of or where
should they go back into training and upskill themselves? Should
they knock on doors? What is it that young ones
should do?

Speaker 3 (05:00):
Yeah, and I guess that was really a factor last
year as well. So they were, you know, everyone was
feeling it hard, but they felt it the most so
that that age group. And that's why we started to
see the participation rate go down as well, So a
lot of people either stayed in study or went back

(05:21):
into education, so they'd kind of gone, right, well, my
chances are getting a job at the moment. Rather than
sit around, let's go bring some new skills on board
and see if that bittered my chances so hopefully that
will pay off for those people who did take that
option last year. I think in terms of early on

(05:45):
and planning and safe appearance to keep an eye on
the market and see where those demands are. Now you
can't I remember my nieces, I thought, right, but they
need to be engineers. So it was very tactical buying
of the Christmas presents to try and push them that way,
but didn't quite work out. But you know, looking where

(06:09):
the air is going to be a demand and kind
of safeguard and bring up those skills.

Speaker 2 (06:17):
Absolutely. Thank you, Shannon, and what about you. The only
other thing I'd ask you is the regional figures show
quite a variation. I guess it's a bit more difficult
for people with families to be able to up sticks
and move, but should people be prepared to or at
least be open to the possibility of moving.

Speaker 3 (06:38):
Yeah, and I think we're definitely seeing that. So the
recovery started earlier in some of the regions, so you know,
we looked at Canterbury for example, and also further down
south whereas Auckland. You know, the engine room of the
country is still finding it really hard and our unemployment

(07:02):
rate here is of course much higher, so hard in
the city centers, but also when things start to move,
that's where the jobs are as well. So you know,
it's not a bad idea too if you have that
flexibility to maybe think of that the sea change or
tree change and look at what your options are, because
it can it can be a great lifestyle move as well,

(07:24):
so think of the bigger picture.

Speaker 2 (07:27):
Lovely to talk Sin and thank you so much. Shennon Baralo,
Frog Recruitment Managing Director.

Speaker 1 (07:31):
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