Bay service sector set to boom

Service industries such as hospitality will see strong job growth in the next three years. File photo.

The Bay of Plenty will see demand for service jobs increase 39 per cent by 2020, according to industry training organisation ServiceIQ.

In total, more than 72,000 jobs – a third more than exist now – will need to be filled by 2020 across the country.

ServiceIQ chief executive Dean Minchington says although the looming skills shortage is a national problem, it needs local action.

'The situation is serious for service sector businesses, but there's a silver lining too. With this growth there are opportunities for local people to get local jobs and to gain new skills as they learn on-job.

"It means that young people will be able to get their first job and get started on a rewarding career. It means that those a bit older wishing to return to work, change careers, or make a life change will have that opportunity.

'For example, with clever thinking and a will to make things better, there is the opportunity for people who might have health issues to be able to get into work and benefit from gaining new skills, being involved in the camaraderie and connections that a workplace brings, as well as earning income.”

The service sector currently makes a significant contribution in the Bay of Plenty, particularly in tourism. In 2015, the service sector accounted for 17.3 per cent of the region's GDP; by comparison agriculture, forestry and fishing accounted for nine per cent.

Of businesses in the Bay of Plenty, 18 per cent are in the service sector and the sector employs over 31,000 people or 23.2 per cent of all workers.

In comparison, the kiwifruit industry employs about 6000 people.

Of the service sector workforce in the Bay of Plenty, 78 per cent are employed in the two main urban areas of Rotorua and Tauranga (28 per cent in Rotorua and 50 per cent in Tauranga).

It's expected the Bay of Plenty's service sector will have reasonably strong growth to 2020, and combined with a forecast replacement rate of just under five per cent, the sector will have to fill nearly 9000 job openings over the next four years.

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