The ‘old’ news that's shaping our workforce future

New Zealand's workforce is changing faster than many of us realise.

New Zealand is getting older. We are having fewer children, and becoming more diverse than ever before. These shifts are reshaping our communities, workplaces, and economy in ways that are affecting every region, every industry, and every employer.

The challenge is that many of us still talk about labour shortages as though they're temporary, something that will ease once the economy turns, or the next generation enters the workforce. The data tells a different story. The worker shortage isn't a rough patch we're riding through; it's becoming part of New Zealand's new reality. Immigration will matter more, not less, and so will making better use of the talent we already have.

That was the central message from Paul Spoonley, one of New Zealand's leading demographers at our Hawke's Bay Talent event earlier this year. Paul has spent decades studying how populations grow, shrink and change, and is often the person the media turn to when they need help making sense of where New Zealand is heading.

What struck me most was how immediate his message felt. The future he described isn't something waiting for us in ten or twenty years. It's already visible in the data. And while these trends are playing out across the country, Hawke's Bay offers a useful glimpse of what many other regions may soon face.

Paul's message centered on four major demographic shifts.

An ageing population

The first is what Paul described as demographic disruption: New Zealand's population is ageing.

Baby boomers are leaving the workforce in large numbers, while the generations following behind them are considerably smaller. This isn't a labour shortage that resolves itself in a year or two. It's a structural change to the make-up of the country.

By 2031, the proportion of New Zealanders aged 65 and over is expected to continue growing, placing increasing pressure on employers, communities and public services. In regions such as Hawke's Bay, where ageing trends are particularly pronounced, the effects are already becoming obvious.

Paul's message to employers was straightforward: stop assuming there's an endless pipeline of younger workers coming through and start thinking more strategically about attracting, retaining, and supporting older workers.

Youth and worker scarcity

The second shift follows naturally from the first.

New Zealand's birth rate has fallen sharply. The bottom of the population pyramid is getting narrower while the top continues to expand. Fewer young people are entering the workforce just as larger generations are preparing to leave it.

The result is a growing labour and skills shortage that reaches well beyond any one region or sector. There simply aren't enough people coming through to replace those exiting the workforce.

When you compare population projections for regions such as the Hawke's Bay with the national picture, the trend is largely the same. The difference is that some regions are already feeling the impacts more acutely.

A lot more diversity on the way

The third shift is diversity, and a lot more of it.

New Zealand is already one of the most diverse countries in the OECD and is projected to become more diverse still over the coming decades. Immigration is a major part of that story, but it's also one of the most unpredictable drivers of population growth.

Recent years have shown just how volatile immigration can be. Yet those fluctuations also highlight how dependent New Zealand has become on immigration to fill workforce gaps and sustain population growth.

At the same time, there are significant talent pools already here that remain underutilised. Māori, Pasifika communities, women and older workers all represent opportunities for employers willing to think differently about recruitment and development.

Hawke's Bay reflects this changing New Zealand particularly well. Māori make up close to a third of the region's population, alongside growing Pasifika, Asian and migrant communities. The challenge isn't simply attracting new talent; it's making better use of the talent we already have.

Uneven regional growth

The fourth shift is uneven regional growth.

Population growth is no longer being shared evenly across New Zealand. Some regions continue to grow, while others are stagnating or declining. Even within regions, the picture can vary significantly from one district to the next.

Hawke's Bay is a good example. Hastings, Napier and Central Hawke's Bay all have different demographic profiles and growth trajectories. Understanding those differences will become increasingly important for employers and policymakers alike.

The broader lesson for New Zealand is that population growth alone won't solve workforce challenges. Regions and industries will need to become much more deliberate about attracting, developing, and retaining the people they need.

The questions worth sitting with

What is New Zealand's value proposition to the people we need? Why would someone choose to build a life and career here rather than somewhere else?

And at a regional level, what makes places like Hawke's Bay attractive to workers, families, and businesses? What do we need to do to turn population growth into economic opportunity?

If I had to boil Paul's message down to one thing, it's this: the new demography isn't coming. It's already here.

For New Zealand, that means rethinking where talent comes from and how we keep it. For Hawke's Bay, it means recognising that many of these changes are already on our doorstep. Immigration will continue to play a critical role, but so will unlocking the potential of the people already here.

The real question Paul left us with was whether we're being strategic enough about either.