Unemployment 11 Year High To 5.6% | But Employers Can't Find Staff?

So unemployment has hit 5.6%.

We still got inflation outside the targeted band of 1 to 3%. And it looks like the Reserve Bank are wanting to increase interest rates to tackle some

of this inflation as well. We have a term for this and it is called [ __ ] gee whiz. It is not very pretty out there is it? What is interesting? Two

things. One, I'm having a number of people tell me we can't find staff.

Think how is unemployment at 5.6%.

And the underutilization rate, I think, or underemployment rate. I think there's three different things. Under

employment, people want more work. They

want to be able to do more even if they do have uh some form of employment. They

the employers say, "I can't find the staff." Which I find that's just

staff." Which I find that's just interesting. Um, and then also you've

interesting. Um, and then also you've got people that have been able to get back in control of their credit. So

we've got I think the lowest level of credit arers for the last four years.

Hey Slim Shady, how's the sun out there?

Beautiful. Remember this country that we live in is amazing underneath all of this economic data. Get outside and enjoy it. So that's confusing. How are

enjoy it. So that's confusing. How are

people being able to get back on top of their aras, but then we've got less people in work. Um, you also see the things that people are spending on just,

you know, uh, sporting events and things just just ripping just ripping and and I'm not just saying it's the top end of town too, but the top end of town of the economy I think is doing quite well. I

mean that that is interesting for me.

How are so many people struggling to find work when employers are saying that it has never been easier? I got to get that sun out of your face, don't I? But

uh never been harder to find some of these people uh to come work for them.

What I'm noticing in in my business, in my inbox, is that I have a flood of young people emailing me wanting to come

and work for me or start an internship or a graduate role or even volunteer even volunteer uh without being paid to do so, which you know, even if I was to

go right, I'm going to take a chance on them and I'm going to I'm going to hire one person like it'd be one, you know, and it wouldn't even scratch the surface of the number of people that are getting

in much. I think our youth are probably

in much. I think our youth are probably coming into the workforce being very frustrated uh at the inability to be able to get a job. So yeah, I mean

something I've been banging on for some time about is that I think the economy's changed a little bit especially over this last six years and especially since we blew the bubble up where a lot more

wealth has accumulated uh in the wealthier households and a lot of that money is sitting in term deposits and savings. I think there's an extra $130

savings. I think there's an extra $130 billion sitting in savings and turn deposits since 2019. $130 billion.

That's more that's more just that's extra sitting in savings and turn deposits than what the wealth the entire wealth like the blowing up asset wealth of our rich list in New Zealand is

worth. So there's a shitload of money

worth. So there's a shitload of money just sitting in accounts. Uh do they want to spend that? Not sure. But what

I'm seeing from some of the clients that I'm working with is that yeah like they they are um they are spending and the say the the people who are now retired

or who are wanting to enjoy some of that money they are they are out and about and they're spending and that's where I think there's that that big gap or difference in the economy. Um another

stat that I saw recently as an example was that you know we got 1.6 6 trillion tied up in houses, right? Boxes of

sticks that people have paid a lot of money for. And there's a $27 billion

money for. And there's a $27 billion maintenance bill sitting on a lot of those properties. Uh that that could be

those properties. Uh that that could be started. And you know, if I'm a trady,

started. And you know, if I'm a trady, uh I'm probably wanting to knock on some doors and try and employ myself via offering solutions. And I think at a

offering solutions. And I think at a smaller level too, we're sending people into jobs uh and applying for jobs and the jobs aren't there, but the money actually still is there in some way,

shape or form, but it's going to be in the form of u solutions for what people want. So, it might be cleaning around

want. So, it might be cleaning around their house. It might be maintenance on

their house. It might be maintenance on that property. Of course, you've got to

that property. Of course, you've got to have the skills to be able to do that.

Uh, but I do think it highlights why two 17-year-old kids can ring me and say, "Mate, we're making a,000 bucks a day cleaning windows between us." So, 500 bucks each. You know, that that would be

bucks each. You know, that that would be our earning. A lot of people in New

our earning. A lot of people in New Zealand. And not everyone's going to

Zealand. And not everyone's going to want to do that. But, you know, not everyone can be an employee either. Not

everyone can work for the government.

Not everyone can sit on an unemployment benefit. And a lot of people on benefits

benefit. And a lot of people on benefits don't want to be on those. They want a chance and they want a job. Um, but when those things don't exist, sometimes we have to do things that we may not have

wanted. And I'm not saying that that's

wanted. And I'm not saying that that's the answer, but it's just the economy is so different out there. And I guess it always is around different uh regions as well. The other thing I find kind of

well. The other thing I find kind of interesting, I was speaking to someone recently and they were looking at an information evening about working in the forces. And by the sounds of it, you

forces. And by the sounds of it, you know, you start off at a pretty good wage when you're working um the Navy or the military. And you know, someone

the military. And you know, someone might know a lot more about this in the comments, but uh you can then uh have subsidized meals, you may have subsidized accommodation,

and you can do an apprenticeship and that will be paid for. So the taxpayer is paying for all of that. And I believe they're looking for a shitload of people. I'm kind of thinking

people. I'm kind of thinking why aren't we having maybe like a [ __ ] 1pm standup uh as we may have been familiar with many years ago to say

hey you know there are roles available in in these areas and funnel some people into those now it's not going to be for everyone again but like if they're

crying out for like isn't this an opportunity to start putting some people into apprenticeships and the likes? Um

the other I guess thing that's coming at us and and something I noticed that one of the politicians said is that you know you guys really need to be focused on AI and understanding Claude and I kind of

think hey uh I said a few budgets ago where's the incentive for businesses to be exploring AI like you've got investment boost as a tax change setting that's encouraging spend on

infrastructure. Uh if you're now telling

infrastructure. Uh if you're now telling people they need to understand AI well like where's the incentive for that? So

shouldn't we be then increasing the deductibility um or speeding that up? So instead of you know 100% of the cost or you know say you're getting consulting for AI

then you can claim a 200% of the cost as a deduction rather than 100% to in or you or maybe even 120 whatever but just to just to incentivize that AI piece.

Now on the other side of that though is that you know I've seen a lot of businesses recently too go do I pay someone now 80 to $100,000 to do XY Z

role when 40% of their role could be done by AI now and maybe 60% in a year's time. So, do we spend that $100,000 on

time. So, do we spend that $100,000 on that person or do we invest a bit more into AI, slow down a little bit, uh go

go back and, you know, implement a bit more AI through the business or do we hire someone who may be able to learn the AI side of this? We teach the AI and then they follow the AI process, but

they don't necessarily have to be paid as much nor have the same skill set as that other person. So we are in a very very fast changing environment and I think a very confusing environment that

Kiwi people haven't been in for some time as well. You layer over top of all of this the fact that many people won't want to admit that they haven't really

needed to focus on increasing their skills because their wages have sort of uh slowly drifted up and then house prices have as well. So, you know, what

are you going to do if you've got equity in your property and you really want a deck? Are you going to go out there and

deck? Are you going to go out there and are you going to figure and a spa and impress your friends and do up your house? Are you going to go out there and

house? Are you going to go out there and figure out, you know, I'm going to figure out how to be more valuable to the marketplace and I'm going to get paid more to do it and I'm going to do it that way and pay my tax on that and

do it? Or are you going to say, "Fuck, I

do it? Or are you going to say, "Fuck, I might just go to the bank and borrow 50 grand. Oh, approve. Here you go. Here's

grand. Oh, approve. Here you go. Here's

50K. Just wire it into your account. go

and spend it. Make sure you keep servicing the debt, but looks like your your job's safe and you know your pay's been slowly increasing, so yeah, we'll lend you some more money. You're going

to find that most people are going to do the other thing, right? And that's I think what a lot of people have done when we don't have for decades. When we

don't have house price growth, well, we're kind of like a little bit of a one-trick pony. When it's then going,

one-trick pony. When it's then going, what like what how what do I do now?

Like what do you mean? Like someone pay me more and where's where's where's all the extra income? and and I think then you've got wages not growing uh in line with inflation. So people are going

with inflation. So people are going backwards on real terms. So yes, it's just a it's a it's a meat grinder out there and I can't really see it changing massively anytime soon unless for

instance one of the political parties says you know um let's get a stack of infrastructure going. I do think though

infrastructure going. I do think though what I am seeing I should just say that I I think like I'm seeing more cranes in the sky in Oakuckland. I'm noticing

clients a little bit more confident uh running planning days and stuff that people are wanting to come to those signing up. It's it's hard for a

signing up. It's it's hard for a business owner to want to do that if they can't see their future. So, I do feel like things have slightly turned. I

think you've got to really be selling something into the market that people do want. You know, it's no surprise to me

want. You know, it's no surprise to me that a number of hospitality and retail businesses are not surviving. Like, of

course they're not cuz people are just valuing [ __ ] less. You know, I went and brought something the other day, a t-shirt, and it was like, here's a free tote bag. You know, I'm like, I don't

tote bag. You know, I'm like, I don't really need a tote bag, but you're giving it to me for free. And I'm

thinking people go and pay for a tote bag, but this is now free from this store. So, you know, shit's become so

store. So, you know, shit's become so cheap and nasty out of uh different places that I think for Kiwis to think that they're going to um bring it to New

Zealand, put a margin on it, spend a heap of money on branding, um bust their ass and send it out, face increased shipping costs and pay leases that are

going up, subscriptions going up, power, all these things, and then, you know, make a good living out of it. I like for me, I can kind of see how that can break. uh if you're not really good at

break. uh if you're not really good at what you're doing or you're not something that's got good mar selling something that's got good margin in it or good at what you do. So yeah, it's no surprise to me that there are many liquidations still a lot of business

owners don't understand their numbers, don't understand margin. So eventually

that will catch up on you and we also had a massive lag of people not being liquidated through uh the demic. So now

there's a bit of catch up of that too.

So I I don't I kind of don't take those statistics massively as the thing um that that determines how the economy is going. Those are always lagging

going. Those are always lagging statistics. But that said, it's pretty

statistics. But that said, it's pretty crazy to see some of these larger businesses still struggling and going under. Uh but a lot of the debt has

under. Uh but a lot of the debt has historic. I saw another one recently,

historic. I saw another one recently, $1.5 million of a GST and PAE. That

takes a long time to build up a $1.5 million of GST and PA. That's not a like, oh, that business just failed the other day. that is that's been going

other day. that is that's been going like that headed for that for you know 12 18 months at a minimum I would say anyway unemployment 5.6% 6% gny nlly stuff. Feeling for anyone that doesn't

stuff. Feeling for anyone that doesn't have a role at the moment and is trying their ass off to get one. And you know, especially for those younger people as well that are like hissing to get into the workforce and it's not happening for them. Any parents that have got kids as

them. Any parents that have got kids as well. Uh she's tough. I've gone through

well. Uh she's tough. I've gone through many solutions in prior videos. I'll

leave this one here before it drags on too long. I need to get to the gym and

too long. I need to get to the gym and get out there and enjoy a little bit of that beautiful New Zealand that we still have underneath all that economic data.

Be good.