Nearly 1000 more people are now employed in Central Otago than a year ago, but still more are needed.

Central Otago’s economy is buoyant with spending up, horticulture strong and construction, education and transport industries showing strong growth in employment numbers, according to a Central Otago District Council economic development report.

“It’s good news for Central Otago, people are still moving here, it’s a popular place and that is helping stimulate growth,” council’s economic development manager, Nick Lanham, told councillors at an online meeting this week.

He said credit card and eftpos spending was up on pre-Covid-19 times and job seeker numbers – the number of people registered as actively looking for work - which had been up to 375 in the height of the Covid-19 pandemic, was back around pre-Covid-19 levels of mid 70s.

Inland Revenue data showed there were 943 more people employed in January in Central Otago than in the same month last year.

“A lot of that will be in horticulture, probably sixty percent of that and that will reflect more RSE workers in the district and more seasonal workers being employed for a longer time.”

Cherry exporters had, had what was probably their most productive year quantity-wise since 2017 and other fruit exporters had also harvested good yields coupled with above-average prices.

Primary industry prices were staying high and with the biggest boom in construction since the 1970s happening across the country, Central was no exception, showing good demand and future prospects.

“The pinch points are around supply.

"The supply of labour and the supply of materials.”

He said council was looking at longer term solutions to the labour shortage such as engaging youth to raise their awareness of what the opportunities were locally, how they could transition to employment and helping schools navigate employment pathways for students.

“It’s coming through from a number of sectors that employers are really struggling to get staff and that is reflected across the industries.”

With new plantings going into the ground in horticulture, the number of workers needed each year was set to grow – an extra 1200 may be needed next season.

Inflationary pressures were taking a toll on households, however, with costs rising and wages not keeping pace, he said.