Education, education, education

That's the message from Reserve Bank Governor Adrian Orr as the country faces up to a skills shortage.

He says the country has reached full employment.

Orr says there's more demand than supply of workers, despite many people being on benefits, especially because we can't bring people in to the country.

He says we'll have to change our ways and think much more about education and inclusion in the labour force.

Orr says it will always be difficult to get everyone to engage in the labour market so offshore talent will be needed.