a large hand holding an eraser is erasing a large proportion of a group of people. the background is green grid paper
Young New Zealanders are bearing the brunt of the rising unemployment rate (Image: The Spinoff)

BusinessAugust 21, 2024

The labour market is leaving young people behind – and that’s a problem for all of us

a large hand holding an eraser is erasing a large proportion of a group of people. the background is green grid paper
Young New Zealanders are bearing the brunt of the rising unemployment rate (Image: The Spinoff)

When Covid closed the borders, the economy replaced overseas workers with young New Zealanders. The latest jobs data suggests they’re now bearing the brunt of the rising unemployment rate – and that’s likely to have a lasting impact.

Many people suffer when an economic downturn occurs. Right now, the people most impacted by our struggling economy are the young.  If you consult the data released by Stats NZ recently, the monthly employment indicators for June showed yet another fall in the number of young people in work. Since last year, the number of 15 to 24-year-olds filling jobs has fallen by more than 22,000 people, or 6%. The data appears to tell the story of an economy that used young people when the labour market was tight (ie when there are many unfilled vacancies) and is now in the process of leaving them behind.

2022 was a boom time for New Zealand’s youth in the labour market. Analysis undertaken by BERL using Statistics New Zealand’s monthly employment indicators finds that in May 2019, 111,000 15 to 19-year-olds were filling jobs. By December 2022, that number had grown by 52% – 170,000 people. 

There is a significant degree of seasonal variation in the information, but essentially, the data shows a huge increase in youth employment between March 2021 and the end of 2022. The increase and decline in youth employment are not simply urban or rural phenomena. Significant youth employment growth took place in every region of New Zealand between 2019 and 2022. 

The highest increase in employment was found in Hawke’s Bay, where a 60% growth occurred. The lowest increase was found on the West Coast, where 35% growth took place. In our two largest urban centres, Auckland and Wellington, 55% and 51% growth occurred respectively. 

On August 1, 2022, New Zealand reopened its borders fully for the first time since the pandemic started. For every region except three (Otago, Tasman, and Marlborough), the opening of the border marks the point at which growth in youth employment starts to decline. Nationally, the number of jobs filled by 15 to 19-year-olds falls nearly every month after this point. Today, fewer 15 to 19-year-olds are in work than at any point over the past three years.

Looking at other age groups helps to demonstrate how unusual this trend in youth employment is. The number of jobs filled by those aged between 30 and 49 is at record levels. Even the number of jobs filled with those aged 65+ is 0.5% below its record peak. 

The employment market for young people over the past three years has behaved like a rollercoaster, yet for all other age groups, it’s been a picture of calm.

This data is important for three reasons. Firstly, it suggests that during the Covid-19 pandemic, the economy replaced overseas employees with younger New Zealanders. These Kiwi workers now face losing their jobs with rising general unemployment. It also suggests that increased inward migration will see demand for youth labour fall away, risking returning New Zealand to the structurally higher levels of youth unemployment seen before the pandemic.

Secondly, many young people may have been sucked into work rather than training during the tighter labour market. That means they might have missed the opportunity to access tertiary education or an apprenticeship when leaving school. Now, with increased unemployment, they face a need to access retraining later in life.  Accessing training now will likely be harder for them due to the ending of the first year fees-free, the recent decision to increase tuition fees by 6&, and the halving of support for apprenticeships in the 2024 budget.

Finally, it suggests that New Zealand is likely to need a plan for youth unemployment in the future. A plan that recognises that the easy drivers of employment growth for youth over the past few years have likely ended. A plan that understands the systematic disadvantage that groups such as Māori, Pacific people and disabled people face already in the labour market.

Internationally, the evidence suggests that the longer young workers stay away from work or education, the deeper the scarring impact on their incomes for the rest of their working lives. That’s not only bad for them individually, but it’s also a tragedy for us as a country. New Zealand already lags behind many other countries in terms of labour productivity. Without action to tackle that problem, we will be storing it again for the future.

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Kenichi Aperila (Photo: Geoffery Matautia).
Kenichi Aperila (Photo: Geoffery Matautia).

BusinessAugust 16, 2024

Pacific profiles: Meet Ken the barber, who does more than cut hair

Kenichi Aperila (Photo: Geoffery Matautia).
Kenichi Aperila (Photo: Geoffery Matautia).

The Pacific profiles series shines a light on Pacific people in Aotearoa doing interesting and important work in their communities, as nominated by members of the public. Today, Kenichi Aperila. 

All photos by Geoffery Matautia.

Kenichi Aperila (Sava’i, Samoa), better known as Ken the Barberof Bay City Tattoo and Barbershop, Rongotai, has been cutting hair for 14 years. Ken is a proud father of two, a Crossfit enthusiast, and  someone his clients trust and open up to. He has garnered a loyal legion of followers through his playful videos on social media. As he tells me, he’s just doing the work he loves and being himself.

Ken the barber, Kenichi Aperila (Photo: Geoffery Matautia).

What’s your journey to becoming ‘Ken the Barber’?

I grew up in Samoa. Everyone there cuts hair, and my cousins were always giving us haircuts. When my family moved here in 2005, my dad would do me and my brother’s hair and just shave it all off. My brother didn’t like it, so he asked me, “Bro, can you cut my hair?” So I picked up the scissors. Next thing you know I was cutting hair for half the Rongotai College boys. I was cutting by the canteen shop, cutting in our basement, until Mum told us to get out because all the hair was getting everywhere. It started as a hobby. I did it because I liked it, but I never knew I could make a living out of it. Fast forward a few years, and I started working professionally as a barber. I started at Strathmore barbers, then went to Killa Kutz and then Jovani’s in town. 

When did you decide to open your own business?

When I was young, me and the boys used to ask each other what we wanted to do when we grew up. I said, “I wanna open up a barber shop.” Last year I realised I was turning 30 and it’s now or never. I decided at the beginning of last year to go out on my own. It was scary, it’s not easy. But my friends, my family, my missus (Atina), they all encouraged me. I had to bite the bullet. It’s been over a year now and I can honestly say it’s the best decision I ever made. It’s hard but if you do the work you’ll be fine. I don’t wanna leave this life saying, “I wish I did this, I wish I did that.”

Why open a shop in Rongotai, Wellington?

I grew up in this area. I got sick of working in town and I wanted to open something where I was from and give back to my community. I’ve been away for nine years so it was good coming back. The people here are so nice. My partner, Atina, runs Rejuvenate right next to me and there’s the tattoo place upstairs. There are three of us in this unit. 

Ken the barber, Ken the barber, Kenichi Aperila (Photo: Geoffery Matautia).

It’s no easy feat starting a small business, especially in this current economic climate. What have been some of the learnings and lessons so far?

When you go out on your own there’s the fear of losing everything. You’ve got to put it all on the line. If you’re not at work, you’re not getting paid. The hardest part was starting. But once you’re in, it’s all reps. At my old job, I was doing up to 14 haircuts a day. It was hard. I got a mentor and they helped me scale the business so now I’m doing about nine cuts a day. Last year was it only me, but this year I had to bring in another guy, Jeremiah. We used to work together and he lives down the road. He’s a great barber. You have to have a good team. It doesn’t have to be heaps of people but surround yourself with people you can trust and fall back on. 

It’s often said that going to the barber involves more than just getting a haircut. There’s a ritual and a relationship to it. It offers many – especially men– a kind of therapy. What do you make of that?

Hard. With some of my regular clients, I often wonder if they even talk to their partners when I hear some of the things they say to me. It’s like counselling. But I like that people can open up to me. You have to be good with people in this job. I had one guy who used to pay me heaps to do the easiest cut but he wanted to stay longer just to open up to someone. I like knowing that they can trust me with what they’re going through. It all comes down to how you treat your clients.

Who are your main clientele?

Right now, it’s young guys. It used to be kids, but it’s more adults and university students. I’m not sure how they can afford a cut (laughs). But yeah, mainly men in their 20s and 30s. 

Ken the barber Ken the barber, Kenichi Aperila (Photo: Geoffery Matautia).

What cuts do you like doing and what’s trending at the moment?

I’m open to anything but I like a hard taper. The young ones are really into the Tiktok haircuts. You know, it’s like the mullet with a little taper on the side. Or a burst fade. It’s crazy cos I remember back in the day everyone had the combover. But I reckon the flattop will be back in soon. Afros are great. Just give it a few years. 

You came to our attention through social media with your playful (and really well-edited) videos. Talk me through your approach. 

I was never a social media guy, but when I started the business I found myself getting stuck into the same patterns. I wasn’t growing anymore. It was hard for me because I’ve never been a camera guy, but I told myself I had to do it for the business. At the end of last year, I had 2,000 followers, and now I’m nearly at 12,000. Atina helps me with all the editing. When I first posted, I used to make content for other barbers so they could see my work. But then I had to ask myself, “Why are you trying to impress other barbers? They’re not coming in for a haircut.” So I focused on attracting clients. It works. You find a niche by being yourself. 

What would you say is your point of difference? 

For me, I really care about people. When you sit in my chair, I’ll give you all my time and attention. It’s all about how you look after your client. You have to give them what they need. Pay attention, take your time. I used to do 20-minute cuts, but now I take longer, even up to an hour. I have to spend time with them and give them what they need. People want a quality experience. 

Do you see yourself doing this work forever?

I work toward a five-year plan. I don’t wanna be a 40-year-old barber. Maybe I’ll start another business, and pass this on. My focus for now is to work here for five years and see what happens.

Ken the barber, Kenichi Aperila (Photo: Geoffery Matautia).

This is Public Interest Journalism funded by NZ On Air.