NZ Functional Capacity remains unsustainable: Many Critical functions are no longer resilient
New Zealand’s current economic and social development remains unsustainable over the mid-terms, indicates analysis.
Apart from economic and social development, critical functional capacity for infrastructure development, healthcare advancement, and commercial growth are no longer resilient.
The main reason for all these problems in every sector is the limitation on skilled workers.
New Zealand has insufficient skilled workers, making it difficult for the Kiwi government to uphold the current economic and social structures.
Also, the working capacity of current government-driven services is in decline including, healthcare, transport, and education services and initiatives.
The functional capacity of core sectors is in decline, and the decline is increasing more rapidly than initially assessed. If this continues, some services may reach zero capacity within the next 9-12 months, according to the analysis.
The decline in services may result in the degradation of key services. This may also limit the capacity of the government to improve New Zealand's economy in the near future while also increasing the cost of retaining existing essential services.
To solve the problem, some European countries can depend upon short-term immigration and capacity management from public and private sector cooperation.
New Zealand’s economic engine is not big enough to use such tools with the external interference of skilled migrants or investment capital.
The education, health and transport sectors analysis indicates that these sectors need a considerable amount of staff to add in these sectors to reach their functional capacity.
Apart from these sectors, analysis shows that the decline in functional capacity impacts a wider range of sectors every quarter. These include the commerce and hospitality sectors, where growth ceilings capped by staffing shortages have been seen.
To avoid the decline in economic and social decay, more skilled workers are required to fill the gaps in various essential services and sectors.
If this issue is not addressed by the government in the near future, then sector-wise dysfunction and substantive failures are unavoidable.
In critical sectors like healthcare, the dysfunction may lead to more severe problems like sudden deaths due to the shortage of medical staff. This will lead to the degradation of skill development and public harm.
