A building company's agreement to give jobs to unemployed people is being touted as part of the solution to the construction labour shortage

Timber manufacturer XLam has partnered with the Ministry for Social Development to help unemployed people move into the workforce.

XLam chief executive Gary Caulfield says the partnership also means there are more skilled workers out on construction sites where they're really needed.

He says because their company works in a controlled factory environment, they can train unskilled workers to use their machinery.