NZ employer hiring optimism continues

NZ employer hiring optimism continues to improve with strongest job prospects reported in the Finance, Insurance and Real Estate Sector: Manpower

According to the results of Manpower’s Employment Outlook Survey released today, the overall employment optimism across New Zealand continues to improve for the fourth consecutive quarter, with job seekers expected to benefit from a much stronger 2Q hiring pace compared to this time last year.

The survey of over 570 New Zealand employers indicates hiring intentions for the next three months have softened somewhat after notable improvements reported last quarter, with the seasonally adjusted Net Employment Outlook at +14%, up from +13% in the first quarter. This is due to an increase in the proportion of employers planning to hire (23%, up from 20% in Q.1) while there was no change in the number planning to decrease their headcounts (6%).

“This time last year, job seekers faced a pretty cheerless job market, with national employer hiring optimism at its weakest point of the downturn, sitting at -12%,” said Mr. Chris Riley, General Manager, Sales & Marketing at Manpower New Zealand.

“One year on, the story is very different for job seekers. While there is still some caution from employers, optimism is on the rise and it looks as if the New Zealand labour market is gradually returning to employment levels seen before the economic downturn.”

While the overall outlook is certainly a positive one, Mr Riley said that some industry sectors are yet to find solid ground.

“We saw a surge in employment optimism across every sector at the start of this year, but this quarter may see a correction in some. As we get further into the year, employers have a better understanding of their road to recovery and just how long that road is going to be. They are adjusting their hiring strategies accordingly.”

Employers in several sectors are reporting a slower hiring pace quarter-over-quarter, with the greatest declines seen in the Transport & Utilities sector (down to +7%, compared to +13% last quarter) and Services sector (down to +14%, compared to +20% in Q1).

On the other side of the spectrum, employment optimism is on the rise among employers in Finance, Insurance & Real Estate (+31%, up from +20% last quarter), Manufacturing (+19%, up from +12%) and Mining & Construction (+24%, up from +12%).

“It is going to be a balancing act for many of these industry sectors – they don’t want to peak too early and hire before the demand is there but they don’t want to be left behind in the renewed race for talent.

“In the meantime, building a flexible workforce is the key to finding that balance - providing capacity but reducing the risks of permanent hiring. It’s also a great way to ‘road test’ candidates – giving both the company and the individual a chance to see if they fit with each other,” said Mr Riley.

According to Mr Riley, businesses have been constantly reminded throughout the downturn that the talent shortage is set to return and it’s now upon them - particularly in Mining & Construction and Finance, Insurance & Real Estate sectors.

“Businesses can’t afford to wait too long before they make a decision on talent growth plans. Those who act decisively will reap the benefits and snatch up the best talent in the market,” said Mr Riley.

ENDS

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