The small and medium-sized enterprise (SME) sector will provide the solution to unemployment woes in Otago and the rest of New Zealand, Otago Chamber of Commerce chief executive John Christie says.
A recent chamber survey showed that 12% of members were preparing to increase their full-time workforce and there had been strong indications that some sectors had already set up "teams" of workers preparing to take up opportunities in Christchurch.
"They have held back pending decisions being made around the rebuilding of Christchurch, but teams of people are ready to go at short notice," he said.
Mr Christie was commenting on the Government's plans to significantly change the country's welfare programme.
The complex Government reform programme will be introduced in two stages, with the first Bill going before Parliament next month.
The first-stage changes affect the domestic purposes benefits, widow's benefit and women-alone benefit.
Social Development Minister Paula Bennett said there would also be support for young people who were on a collision course with long-term welfare dependency.
Mr Christie said there did seem a mismatch in several Otago business sectors with employers looking for people with skills and the people who were looking for work.
The primary sector was struggling to find people willing to work the long hours associated with farming and the related industries.
"The answer to our unemployment is the SME sector. If they have the confidence to take on another staff member, that will address our unemployment.
"When you look at the number of our businesses that employ fewer than 10 people, if every one of those took on another worker, there would be no unemployment issues at all.
"But those businesses have to be in a position to do that.
"It's about having confidence in our future."
The chamber operated the 4Trades apprenticeship programme in the region. The chamber took on the employment risk and and placed the apprentices with companies for on-the-job work experience.
The chamber also managed the course work for the apprentices.
The success rate had been "significant", Mr Christie said.
He recommended the Government considering the Otago model as the one to use for managing apprenticeships.
Many young people in the region had the desire to get into long-term work and the Otago Polytechnic was able to provide its services for that to happen, he said.
Local companies were interested in taking on apprentices now because of the work they could see ahead of them.
"You can't turn out an apprentice overnight. It takes three or four years to do the hours," Mr Christie said.
