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ICT Trends – Business Confidence

Demand for IT Professionals

A recent Candle Market Update reports a positive business sentiment in New Zealand that is helping reverse the off-shore flow of IT talent with Kiwi professionals returning home from Australia, the USA and the UK. Those returning from Australia may be largely influenced by a new report showing that Australia now has a large and increasing oversupply of ICT professionals, not a skills shortage as widely publicized over recent years.

The NZ demand for IT professionals is being fuelled in part by the growth in exports of computer and information services and by the government’s Wellington departments of Customs and Ministry of Social Development requirements for .Net developers, C#, and Java developers.

Over next 12 months the most sought after skills in NZ will be those supporting the growth of software and web based software companies; skills in C# and Java Script frontend IOS and UX, web based development and design tools. According to the report ICT professionals are holding out for well-paid contract roles, rather than take permanent roles, as the local software development sector breaks into new international markets.

However, the latest Seek ICT job advert numbers confirm a long established NZ reality that the 80:20 rule continues to apply to the ratio of full time ICT jobs over the Contract/Temp category, both nationally and in Wellington this month (Fig.1).

Fig.1 Wellington Seek ICT Job Adverts: Ratio of Full Time to Contract/Temp

Unfortunately, the positive business sentiment is not backed up in terms of the number of Seek ICT job adverts for this month, with a drop of 16 per cent on April’s figure of 2483 and 8 per cent down on May 2013 (Fig.2). This could be due to a dip in business confidence, possibly as a result of 2014 being an election year, although there may be many reasons for the sudden drop in Seek ICT advertised jobs. Perhaps the unexpected influx of New Zealanders who are returning from Australia, the United Kingdom and the USA with the requisite ICT knowledge, skills and experience are taking up many of the available positions.

2014 Budget Announcement

A $198.6m boost for tertiary education and research, according to Tertiary Education, Skills and Employment Minister Steven Joyce, continues a focus on increasing funding for science, technology, engineering, and mathematics (STEM) subjects and includes $28.6 million for ICT training initiatives.

Given the predicted continuing growth in technology-related industries and businesses the additional funding is a welcome increase that could/should go some way to addressing the foreseeable demand for ICT skilled and qualified graduates.

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Fig.2 Seek ICT Job Adverts Monthly Trends 2010 –2014 (May)

While Trademe IT job adverts (fig.3) are down 13 per cent on last month, reflecting a similar decline in Seek ICT job adverts, they continue to trend ahead of this time last year, up 1.3 per cent.

Fig.3 Seek ICT & Trademe IT Job Advert Trends to May 2014

The monthly Seek ICT job adverts for May (fig.4) have decreased for all regions with Wellington

down 30 per cent on last month. Auckland had the smallest decrease. (Refer to figure 5 for specific

numbers).

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Fig.4 Seek ICT Job Advert Trends Monthly Change for May 2014

Figure 5 provides a detailed record of the Seek ICT job advert trends by region to May 2014.

Fig.5 Seek ICT Job Advert Monthly Trends to May 2014

Conclusion

This month’s drop in Seek ICT job adverts may just be an aberration that defies a specific explanation. Overall it is clear that NZ’s ICT industry is thriving. It will continue to fuel a demand for people with the necessary skills and knowledge and to provide opportunities for a financially rewarding career.

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News Bytes: A to Z

Australia – ITWire: ICT Skills Shortage. What shortage?

Clarius reveals that attracting students to ICT related courses remains a problem, with the recent downturn in opportunity and offshoring accelerating the situation.

Australia – Financial Review: Older IT staff replaced by ‘cheap 457 skills’

The program plays a critical role in addressing the current ICT skills shortage and provides the opportunity to contribute to the development of Australia’s own ICT skills base and expertise.

Australia – TechRepublic: How the 5 hottest tech jobs are changing IT

As powerful forces like the cloud, mobility, and big data reshape the IT industry, the job roles within it naturally grow and evolve.

EU – SiliconRepublic: European Commission kicks off e-Skills for Jobs campaign

By 2020, the number of ICT management, architecture and analysis jobs will grow by 44pc compared to 2011, and related jobs will increase by 16pc, the study forecast.

Ireland – The Journal: Are women the ‘untapped answer’ to Ireland’s IT skills shortage?

Last year a Fastrack to IT skills audit revealed that 4,500 jobs in the sector are currently unfilled in Ireland, and 10,000 more potential jobs are under threat in the short-term, thanks to a skills shortage.

NZ – Business Day: Brain food delivery in the balance

Tertiary Education Minister Steven Joyce has not cut funding to liberal arts courses, but offered more funding and places to "STEM" subjects - science, technology, engineering and maths. NZ – NZ Herald: Growth-driving polytechs hurt by dated public image

Outward-facing education institutions and industry links are paramount to providing the right kind of education for students to ensure they're ready when it comes time to enter the workforce.

NZ – NZ Herald: Microsoft plucks Kiwi startup from the cloud

Microsoft buying Wellington cloud-computing firm GreenButton is "good for New Zealand" and gave a healthy return to local backers, says the Crown-owned fund which invested in the startup.

NZ – Scoop: Budget 2014 provides $198.6 million of operating funding for new investment in tertiary education continuing increased funding for STEM subjects

NZ – Wellington.Scoop: Big increase in ICT contracting in Wellington; skills shortage brings rewards

The skill sets in demand in Wellington are .Net developers, C#, and Java developers, mainly for Customs and Ministry of Social Development.

SA – Bizcommunity.com: Addressing the Skills shortage in ICT

The onus is on those in the IT sector to prepare youths adequately for productive and successful careers in the industry. Companies need to re-examine their learnerships and training programmes, and assess whether they are giving young people the tools they really need to be successful.

UK – HR Magazine: Lack of women in IT costing UK £2.6 billion a year

Closing the Gender Gap, a report commissioned by internet domain service provider Nominet, surveyed over 500 decision-makers in the IT sector. Over half (59%) of the IT leaders asked agreed that a more gender-balanced workforce would benefit their team.

USA – NY Times: Reading, Writing, Arithmetic, and Lately, Coding

Since December, 20,000 teachers from kindergarten through 12th grade have introduced coding lessons, according to Code.org, a group backed by the tech industry that offers free curriculums.