November 2000

Regional Plan Wellington

CONTENTS:

• Message from the Chief Executive
• Regional Commissioner’s report
• Our region
• Our regional strategies
• Objectives and key tasks
• Achieving our key tasks
• Our community commitment
• Consultation

MESSAGE FROM THE CHIEF EXECUTIVE

I am very pleased to have the opportunity to introduce this Regional Plan to you. It is a summary of what we’ve achieved for this region during the year, but it is also a strategy for how we will be doing even better in future.

I am always very proud to be able to tell people about the Department of Work and Income’s successes,and the hugely significant role our staff play in achieving that. I believe this Plan illustrates just how hard they have been working for the people of this region. While highlighting the positive steps we’ve taken in the local labour market to really make a difference for those living and breathing the special nature of this region, this Plan also looks further ahead, to the goals we’ve set our sights on for the coming months.

We are taking every opportunity we have to meet our commitment to help all New Zealanders achieve independence. We are engaging with communities more than ever before. A strong foundation for our ability to do this is our regional flexibility strategy – local solutions to local needs.

Already we’ve seen good indicators that this focus will move us ahead very quickly in meeting the needs of the individuals who make this region the special place it is. As always,we will be closely focused on the local client base. We’ll be organising our resources to target local needs in the most appropriate way for a particular area, or client group.

‘Closing the Gaps ’is also at the forefront in every case. The Department is in a special position to make a difference here, with our Maori and Pacific clients already a key target area for our specialised programmes to assist people in taking a full part in the economic, community and educational life of their locality. I know this Plan sets the right challenges to meet the needs of this community, and I believe it demonstrates the special local understanding, knowledge and expertise our staff can offer.

Working together, and in local partnership, we can only have success.

CHRISTINE RANKIN

REGIONAL COMMISSIONER’S REPORT

This Wellington Regional Plan illustrates the key priorities and strategic direction for the 2000/2001 year, and gives some insights as to how those priorities will be achieved. It will capitalise on the experiences from the previous year and will reflect a new regionalised approach to the delivery of services by the Department of Work and Income in the Wellington region.Regional flexibility is the key to providing scope for a regionalised approach that will develop local solutions to meet local needs and opportunities.

In addition to regional flexibility, this plan demonstrates an increased emphasis on employment-related issues. Strategies are aimed at enhancing services to Maori and Pacific Peoples and creating stronger, more collaborative links with local communities and other key agencies. There are many benefits to adopting a regionalised approach to service delivery including a better overall service to hose needing income support, training better suited to the individual ’s needs and most of all, helping more people in our region get jobs.

This plan represents a culmination of views from local communities, councils, employers, training providers, Maori and Pacific Peoples, and other agencies. It is a general summary of views that identify what we believe is required to facilitate the match of client and employer needs in he labour market, contributing to a stronger and more secure regional economy.

In recognition of all those with an interest in the priorities of this year ’s plan, consultation had been extended from the previous year to provide more people with an opportunity to have their say.

As well as signalling the strategic direction for the coming year it is timely to recognise the tremendous amount of hard work done by regional staff and acknowledge the highlights and achievements from last year.

• Specialised services were made available for NZ Superannuation and Invalids Benefit clients.
• Training and employment projects were implemented with Kilbirnie Pak’n Save and the WestpacTrust Stadium,where 100 and 600 people respectively gained employment.
• Approximately 5,500 opportunities were purchased to assist clients with work confidence, job search and skill development.
• 5,191 people were placed into developmental training opportunities at a cost of $1.815m.
• 6,043 people were placed into employment, of which 30% were Maori placements.
• $7,000,000 was paid out in employment subsidies and grants.
• A total of 1,711 Maori women,men and youth have completed developmental training.

Looking Forward
I am looking forward to this year,and am confident that together,we will achieve better outcomes and generate better prospects for those most in need. The flexibility gained from a regional approach and greater emphasis on working in partnership with other agencies,local bodies and community organisations can only strengthen our ability achieve a better result.

While each region operates within a national framework,this year I plan to focus the Wellington region on improving flexibility in regional service delivery by

Looking forward
I am looking forward to this year,and am confident that together,we will achieve better outcomes and generate better prospects for those most in need.

The flexibility gained from a regional approach and greater emphasis on working in partnership with other agencies,local bodies and community organisations can only strengthen our ability achieve a better result.

While each region operates within a national framework,this year I plan to focus the Wellington region on improving flexibility in regional service delivery by

• developing regional strategies that match resources to labour market demand and community capacity
• determining the best mix and degree of specialisation of frontline staff to achieve optimal delivery of services
• increasing our employment focus and providing enhanced services to employers
• enhancing services to Maori and Pacific Peoples
• working in partnership with communities and other agencies to better achieve employment outcomes.developing regional strategies that match resources to labour market demand and community capacity
• determining the best mix and degree of specialisation of frontline staff to achieve optimal delivery of services
• increasing our employment focus and providingenhanced services to employers
• enhancing services to Maori and Pacific Peoples
• working in partnership with communities and other agencies to better achieve employment outcomes.

Specifically,the focus will be on specialised case management of work-tested and non-work-tested clients in Porirua,Johnsonville,Wellington,Upper Hutt and Wainuiomata.The emphasis will be on well-being and work outcomes.We will work with refugee and migrant groups in Wellington to identify solutions for migrant clients.Initiatives will mainly be managed from the Newtown office.A ‘One More Worker’campaign will be instigated in Porirua to create work opportunities for Porirua clients and work opportunities for Maori will be achieved through a Maori business forum.

We are eager o do our very best to successfully deliver the priorities contained within this plan in the hope it will encourage you to join with us,so together we may achieve better prosperity for all.

OUR REGION

Introduction

The Wellington region has four territorial cities within its boundaries –Porirua, Upper Hutt, Lower Hutt and Wellington, with each city providing its own diverse range of exciting opportunities while facing quite separate challenges.

There are nine service centres located throughout the region in Porirua, Johnsonville, Upper Hutt, Naenae, Lower Hutt, Wainuiomata, Wellington, Kilbirnie and Newtown. Frontline Case Managers and Work Brokers administer a range of programmes in each centre, with specialised services for superannuitants available at each service centre.

The Wellington region is New Zealand’s political and financial hub with a relatively highly educated workforce and a well-developed structure to support economic growth. The regional economy is driven more by services than many other regions and the current slow-down of domestic demand is expected to impact more heavily on the Wellington region than other areas. A relatively lower dependence on agricultural production and manufacturing does protect Wellington from the volatility of seasonal fluctuations, but also means it did not enjoy the same extent of growth in these sectors last year.

The main strengths of the region as a whole include

• communication and transport infrastructure
• generally more highly qualified population,and
• comprehensive educational facilities.

Unemployment figures for Wellington are typically among the lowest in New Zealand,currently 6%– an increase from 4% in December 1999.

Overall, growth in the Wellington region over the coming year is likely to be weaker than New Zealand as a whole with employment growth expected to be only modest at best. The unemployment rate may improve slightly with the subdued outlook for the job market constraining any increase in the participation rate.

Employment by industry
The graph demonstrates the high proportion of people employed in social services, property and business services, and trade sectors.

The diversity of industries within the Wellington region is regarded as a strength by many, although there remains significant challenges for the business and financial sectors from restructuring and relocation of head offices.

Wellington City
Wellington City is the hub of this region’s economy. The attractiveness of the harbour, coastline, and hilly slopes along with the vibrancy generated from a wide range of activities make Wellington an attractive place to live.

Wellington is home to the Museum of New Zealand, Te Papa, which is fast becoming one of the country’s leading tourist attractions. In addition, Wellington boasts many other recreational, artistic, cultural and sporting activities, which contribute to the reputation of becoming a city of events.

Consequently, the tourism and hospitality sectors are predicting positive growth.

There is a well-developed transportation network, which is crucial to support the city as much of its workforce does not live there, but commutes from other parts of the region.

Some recent highlights in Wellington City have been

• the development of the WestpacTrust Stadium
• major investment in the film industry
• expansion of the restaurant and accommodation trade
• development of inner city attractions such as Te Papa,the City Gallery and the International Festival of the Arts.

In addition to the growth in the tourism and hospitality sectors,the main characteristics of the Wellington City economy include

• head offices of banking,financial and industry organisations
• Government departments
• health and education services
• emergence of echnology opportunities such as call centres.

Lower Hutt City
The population of Lower Hutt City is approximately 98,2001 with approximately 37% of people in the workforce. The main economic drivers for the second largest city in the Wellington region have traditionally been manufacturing commodities such as metal products, machinery, fuels and chemicals.

Research, ranspor and communications industries have also provided strong support. The close proximity of Lower Hutt to Wellington ensures there will be a continuing demand for freight-handling generated from the ports and airport.

Characteristics of the Lower Hutt population include a generally younger, more highly skilled and ethnically diverse population. They are drawn to Lower Hutt to take advantage of a wide range of recreational opportunities, reasonably priced house market and he close proximity to the employment opportunities in Wellington. The average income of residents is higher than the New Zealand average, mainly due to the fact that many residents commute to high wage employment in Wellington City.

The overall outlook for Lower Hutt is expected to be similar to Wellington City with industries such as telecommunications, research and computer technology providing exciting opportunities within the existing infrastructure.

Porirua City
Statistics in 1996 show the population of Porirua City to be approximately 47,000. The ethnic mix in Porirua is proportionally quite different from the rest of the region with NZ Pakeha 54%, Maori 20% and Pacific Peoples 21%. 50% of families have two parents (1996 census), and the size of families is higher than the national average. Retail and customer service developments in Porirua have encouraged growth higher than the national average. This major boost has been significant enough to offset any impact from recent restructuring in he manufacturing sector.

Other characteristics of he economy include

• community and personal services
• education and health services
• property and business services.

Porirua has a well-developed city infrastructure and although households boast a relatively high average income rate, there is a large gap between the income of residents in the more affluent northern suburbs and the lower income southern suburbs.

Upper Hutt City
A population of approximately 36,000 in the 1996 census makes Upper Hutt the smallest city in the region. The council has developed a strategic plan that focuses on delivering core services well and has a marketing plan that successfully promotes Upper Hutt’s strengths and creates its own identity.

The Trentham Army Camp, Southpac Tyres, Central Institute of Technology, EDS, AgResearch and some large private sector businesses provide the mainstay of the Upper Hutt economy. Upper Hutt also has pockets of industries that contribute to the overall economy in the area of forestry, farming and data entry.

Like other cities in the region, there is a wide ethnic mix and its population is relatively well qualified – with only 34% of those who were identified as being unemployed having no qualifications. However there are issues of concern at he lack of trade skills with the growing number of building consents and associated employment opportunities.

Labour market
We acknowledge the contribution of a wide range of people, employers, community groups,business and the Department’s staff who assisted in this process by providing information concerning the labour market through a series of meetings, surveys and questionnaires.

When considering the regional labour market, it is important to view the broader nationwide labour market trends, all of which are relevant to the Wellington region.

• Technological advances are a major driver for change in the way we conduct business.
• There is a corresponding change in skills required.
• Growing international competition.
• Significant employment growth in small businesses and self-employment.
• An aging labour force.
• The nature of work is changing.

The analysis of the findings from this year’s consultation process is fundamentally consistent with the last year’s. The feedback received from all respondents showed similar views on the growth areas in the region’s labour market and the types of interventions required to match our clients with particular employment opportunities.

The top four areas of industry growth identified by all respondents² for the short to medium term were in

• tourism and hospitality
• communication services
• health and personal services
• retail.

Tourism and hospitality
The City Gallery,International Festival of the Arts and the one million visitors to Te Papa have significantly boosted the local economy. Visitors to Wellington also frequent cafes, restaurants, movie theatres, and visit other attractions that support the retail and customer service industries. This activity has also led to a sharp increase in demand for accommodation. Overall, confidence in the international tourism industry is high. Profits, revenue and employment are expected to improve through to December 2000 largely from increased international exposure and a lower exchange rate.

Communication/Information technology
Emerging technological advancements have given rise to an unmet demand for information technology skills. For example, he call centre industry is fast becoming a preferred option to deliver many services, generating a strong demand for skilled call centre operators. The communications sector is continuing to expand with the uptake of new technologies and high levels of capital investment in communications infrastructure.

In addition, overseas investment in the film industry in New Zealand, more particularly in the Wellington region, has had considerable impact on the economy.It is expected this will contribute to the growth in support services such as hospitality, transpor and personal services.

Community, health and personal service industries This category includes education, health, recreation, Government and local administration. Despite computerisation and restructuring in this sector, and though less responsive to cyclical trends, these industries account for a major portion of total employment throughout the region. Government policy shifts are likely to initiate change for public service organisations, which could lead to an increase in demand for labour.

Demand for personal services is also likely to rise over the coming year, in line with increases in household disposable incomes.

Retail
Growth in the retail trade is expected to slow somewhat from the levels reached in 1999/2000. Consumer confidence has reduced, mainly due to slow employment growth, higher interest rates and higher debt levels. Notwithstanding this, major retail developments continue to emerge in the Wellington region. For example, the Mega Centre in Porirua, various new grocery centres and the proposed shopping complex in Silverstream provide an ongoing demand for customer service and retail staff.

Business and financial
Restructuring and centralisation provide the greatest threat to this industry. However, due to the diverse nature of his sector it is expected to see no major decline in the overall number of employees.

Business and financial services will remain a significant part of the Wellington labour market albeit with a higher skill factor.

Caregiving
Increased demand for residential care facilities for the elderly is leading to expansion in this area, which resulted in an increase in job opportunities. Recent initiatives include the development at Avalon, expansion at Malvina Major retirement village in Johnsonville and the planned development of Athletic Park. These developments will have ongoing staff requirements, albeit mainly part-time and casual. Similar growth is predicted in he childcare area as Wellington continues to support a high number of professional parents.

Construction/Manufacturing
Commercial building permits and commercial and residential house sales indicators all showed growth as at September 1999. While trades and construction is a less significant sector in the region, there is a growing demand for construction workers as major structural developments continue in the short term. For New Zealanders, their ability to be innovative and establish niche markets will be a significant contributor to ongoing competitiveness and economic growth.

The people
The 1996 census records the Wellington region population as 336,000, of which approximately 69% are working age3. Ethnicity ratios of the total population indicate a predominance of NZ Pakeha (70%) with smaller proportions of Maori (12%) and Pacific Peoples (7%). These ratios are,however, not consistent with the ethnic distribution of people receiving benefits or looking for work.

Clients by benefit type
As at 30 June 2000, there were 70,375 people receiving benefits in the region. This includes 35,095 receiving NZ Superannuation and related pensions, with the remaining 35,280 receiving Community Wage (Job Seeker), Community Wage (Sickness), Domestic Purposes Benefit and Invalids Benefit.

A breakdown of the benefit types is shown below.

Community Wage (Job Seeker)	Community Wage (Sickness)	Invalids Benefit	Domestic Purposes Benefit	NZ Super	Non-beneficiary	Other
14,754	2,683	4,120	8,630	35,095	2,724	2,369
20%	4%	6%	12%	51%	3%	4%

The number of registered job seekers in he Wellington region in June 2000 was 20,009, with 69% registered for longer than six months. 40% have been registered between one and four years and 6% registered for four years or more.

Young people are a significant group of registered job seekers, making up 29% of he total. It is likely that many of these job seekers have never been in stable employment.

Comparative ethnicity
Recorded ethnicity information for those on benefits indicates higher ratios of Maori and Pacific Peoples receiving benefits than the total population of the region.

The table below demonstrates the high level of benefit dependence and job seekers amongst Maori and Pacific Peoples compared to the population. The region also supports a number of other migrant groups, particularly in the Kilbirnie and Newtown areas.

Consultation feedback
The wider community was involved in determining the types of programmes and services that would enhance the employment prospects of our clients.

In particular, it recognised there are many groups in the community who are over-represented in the long-term unemployment statistics or at risk of becoming long-term unemployed.

The consultation process identified the necessary skills and attributes needed to develop their ability to compete in he local labour market. The key skills and attributes identified by respondents in the region were

• attitude,motivation and commitment
• work ethic
• personal presentation
• industry linked
• communication
• career guidance.

In Wellington, 41.7% of registered job seekers were assessed as requiring some assistance to find employment and overcome barriers. The most common barriers to employment identified were

• skills not matching the job requirements
• a basic ability to read,write and speak English
• motivation and presentation.

Research from Employers and Manufacturers(Central)Inc⁴ states that "employers regarded basic educational skills, such as simple mathematics and the ability to read, write and speak English clearly and accurately as a serious obstacle in their business." Many employers felt shortages of skilled labour were a persistent problem and almost half of the employers believed their business could expand significantly if they had more skilled people.

Attitude/Motivation/Commitment/Work ethic
From an employer and wider community view,the attributes that would best place job seekers into employment are

• positive attitude
• honesty
• motivation and good work ethics
• a willingness to learn.

The key is to determine when,and what nature of intervention,is best suited to achieve positive attitudes and motivation for each targeted group.

Traditionally,the long-term unemployed,youth and mature groups are prone to rapid declines in confidence and motivation.Youth are at risk in communities where education is not a priority.

Personal presentation
Life skills, personal presentation, goal setting and practical assistance to complete CVs were highly rated by respondents in the Wellington region.

Employers considered personal presentation important in addition to attitude and motivation. Industry linked Work-based training and work experience remain key factors in development.

Employment opportunities are often available if the vocational training is linked directly to an industry. For example, generic customer service and Kiwi Host training are highly favoured as they are transferable to the cafe/restaurant/hospitality and tourism sectors.

Other areas that were identified strongly were rade training for the building industry, basic computer literacy and keyboard skills.

Selecting the right type of skills training to suit individual needs and determining the degree of potential job satisfaction were considered a critical element when matching people to opportunities.

Communication
Literacy, numeracy and English speaking skills across all age groups were favoured highly, particularly by employers. The main disadvantaged groups consisted of Pacific Peoples, refugee and migrant communities.

Career guidance
Case management and work brokerage are designed to support this process in conjunction with formal training providers and various mentoring initiatives.

Unemployed young people aged between 16 and 18 were identified as a group needing career guidance to reduce the chance of them registering as job seekers.

Conclusion
Overall, the regional outlook appears to be positive showing good job growth and low unemployment rates driven by a diverse range of industries such as tourism, accommodation, retail, multimedia and communications.Restructuring, centralisation, and rising interest rates are the main threats to the region.These factors are expected to continue to affect business confidence.

The Wellington region will be working with the community to develop a flexible and highly skilled workforce with targeted training focusing on identified areas of need, and providing services which will be responsive to those needs.

Some job seekers will obtain work themselves, while others will seek assistance through training to develop skills, relying on a range of Government, private training providers and community agencies for assistance. Staff in Wellington will be working to ensure that job seekers develop the ability to access opportunities for training and employment, which in turn will enhance their capability for independence. We will address these issues through increased participation of priority groups, hrough targeted interventions, development of stronger communities and skill development.

The region will purchase training and development services and programmes which will provide opportunities to identify skills, improve job search techniques and build the confidence levels of job seekers to seek employment. Services which are culturally appropriate for the client group will be a key to ensuring priority groups gain maximum benefit from programmes and services purchased.

The key to a successful labour market and positive employment outcomes is the ability to match employment opportunities with people who have the right skills and attributes. A major issue facing Wellington is the skill gap amongst the job seeker groups, such as migrants, long-term unemployed Maori and Pacific Peoples, older people who may have faced redundancy and need retraining, and young people who may never have worked.

Where possible, it is important that skills training is linked directly to the industry best suited to an individualised development plan, and includes some form of post-placement support. We will continue to work with employers o identify labour market needs and provide skills training linked directly to employment opportunities. Skills training for call centres, customer service, clerical and business skills will address the main areas of growth in our labour market.

Sources -Information from business,employers,community and training provider groups in the Wellington Region. Wellington Regional Council Outlook. Upper Hutt Strategic Plan 1999/2000. Lower Hutt ‘City Outlook’2000 .Employers & Manufacturers Assn.Dept of Labour Briefing to Minister of Social Service and Employment,December 1999.