The economic tightrope of tech recruitment

As New Zealand enjoys the Rugby World Cup, the country is showing off its technical abilities as well as showcasing the country in other spheres, but let's hope the country's technology recruitment does not become an own goal.

It's leading recruiters to report an upsurge of interest from techies across the globe.

Some overseas rugby fans are even walking in off the street to see what IT jobs are available.

However, the Land of the Long White Cloud may not be a land flowing with milk and honey.

According to one New Zealand survey, a dip in demand for IT staff has resulted in IT wages dropping 2 per cent to an average NZ$75,000.

However, there are some major variations. Testers and software and web developers have recorded pay rises, with some enjoying healthy median increases of 13 to 19 per cent, but declines in median salaries were recorded in sales, accounts, software architecture, security and network administration.

The national figure was blamed on government cut backs and continuing economic uncertainty. Regionally, Wellington was suffering from government cutbacks while Auckland was doing well. Christchurch was recovering from its earthquakes, but they have also led many locals to flee the city due to the uncertainty over when the city will be rebuilt.

It is heartening to see that New Zealand has sufficient demand to source skills from overseas, but it will be a fine balancing act between the country getting the skills it needs and hurting its own people.

In the UK, after allowing the importation of millions of immigrants from Eastern Europe, the British Labour Party has finally accepted that this has depressed wage levels, particularly at the lower end of the jobs market where immigrants undercut the natives.

Of course, technology is a much more skilled affair, but the principles are the same — increase the supply too much, and prices will fall. As a result, there will be a limit as to what new arrivals the New Zealand IT jobs market can support without depressing wages here.

As mentioned, tech wages are already declining on average, and such declines are likely to continue as global economic uncertainty heightens.

To combat this, the country must also offer a promising future to those immigrants as well since there's no point in luring them over if wages are poor and jobs are hard to come by.

If they are able to gain a faster entry through work visas, they will have their job offers and will know what it pays. For anyone from, say, the UK or Europe, these pay rates will matter more as a strong New Zealand dollar means that selling that small UK terrace may not buy them the big Auckland house it once did. For Australians, the Mighty Ocker should mean for bargains if they have the wealth to bring it over.

Certainly would-be immigrants of all kinds will have to do their homework, but we have to think of the native New Zealanders, too.

British experience has seen East Europeans taking jobs instead of the indigenous English. IT employers will have to avoid doing that. They will also have to try and avoid pushing tech wages down via immigration.

If they do not avoid such problems, then the Rugby World Cup technology recruitment drive could be one massive own goal for Kiwis.