Skills needed — report

Press, 2 November 1989, Page 19

Skills needed — report

PA Wellington In order to create jobs, New Zealand should adopt more flexible work practices and use the education system to create a highly skilled workforce, says a Planning Council report. The report, “What Creates New Jobs?” was written by a Planning Council economist, Mr Paul Callister.

It rejected a low wage mass production economy for New Zealand. “Businesses must concentrate on quality, turning primary and manufacturing output into sophisticated products for welldefined consumer markets,” the report said.

Some of the aspects of labour market flexibility needed for a “lively economy” were flexibility of hours, ability to move freely between jobs, movement to sub-con-tracting, linking payment to knowledge and restructuring awards. Risks must be taken in setting up new businesses or expanding existing ones to create new jobs, the report said. It noted that risk-taking and entrepreneurship may have been discouraged in the past by the growth of the Welfare State.

However, between 1981 and 1986 there had been an increase in self-em-

ployment. A total of 16.6 per cent of the labour force was self-employed, while over half that also employed others.

More research and development was needed for innovation and new direction, the report said. A lower proportion of money was spent on research and development in industry in New Zealand then in any other O.E.C.D. (Organisation of Economic Co-operation and Development) country, it said. Improvements were also needed in informal innovation, using ideas from industry or employees for better quality or productivity.