Job Prospects Strongest in Manufacturing, Services

Manpower Employment Outlook Survey


8 June 2010

New Zealand hiring optimism approaching pre-recession levels: Manpower
Job Prospects Strongest in Manufacturing and Services Industry Sectors

Employer hiring activity in New Zealand is expected to continue its uphill climb back to a pre-recession pace in the third quarter, according to the latest Manpower Employment Outlook Survey released today. Job seekers should find the most opportunities in the Manufacturing and Services industry sectors in the quarter ahead.

The survey of over 630 New Zealand employers indicates hiring intentions for the next three months continue to rise. The seasonally adjusted Net Employment Outlook is at +18%, a moderate improvement of 5 percentage points from the last quarter. The number of employers planning to increase hiring has dropped slightly (22% compared to 23% in Q2, while the number of employers planning to decrease headcount is at 7% (compared to 6% last quarter).

According to Mr Lincoln Crawley, Managing Director, Manpower New Zealand, the news is likely to get better for job seekers.

“Hiring optimism for the coming quarter is at the strongest level seen in two years, with many signs pointing to a gradual return to a pre-crisis hiring pace. In this kind of market, job seekers and employers still need to be patient. It’s not going to be a quick return to boom times,” said Mr Crawley.

Mr Crawley said the employment market is growing sustainably and at a manageable pace.

“Employers are showing responsible levels of optimism. The fact is that we don’t want to see things ramp up too quickly – no one wants to see a wages breakout that has the potential to push up inflation and interest rates.”

Across industry sectors, the Manufacturing and Services employers are the most optimistic, with Manufacturing at +24% (compared to +20% in Q2) and Services at +23% (compared to +14% last quarter). At the other end of the spectrum, the Finance, Insurance & Real Estate sector (at +19%, compared to +31% in Q2) and Mining & Construction sector (at +17%, down from +24% last quarter) have seen notable drops in employer optimism, indicating a residual tentativeness in the market.

Employers across all New Zealand regions have seen a slight increase in hiring optimism, with those in Auckland and Christchurch reporting improvements of 4 percentage points to +19% and +16% respectively. Wellington gained 1 percentage point, also up to +19%.

As the unemployment rate begins to fall, Mr Crawley continues to warn employers that skills shortages are on their way back.

“New Zealand, like many other parts of the world, is facing chronic skills shortages in several industries, some of which didn’t disappear even during recession. Employers in these areas need to start building new strategies that allow them to cope with these shortages for the long term,” said Mr Crawley.

“Reskilling and upskilling existing employees and new hires, and looking for candidates outside traditional skill fields is going to become increasingly necessary. The last thing we want to see is the New Zealand recovery hindered by an inability to fill positions in key industries,” he said.

Commentary is based on seasonally adjusted data where available. Full survey results for each of the 36 countries and territories included in this quarter’s survey, plus regional and global comparisons, can be found in the Manpower Press Room at www.manpower.com/meos. In addition, all tables and graphs from the full report are available to be downloaded for use in publication or broadcast from the Manpower Web site at http://www.manpower.com/library.

A copy of the Q3 2010 Manpower Employment Outlook Survey, Australian report can be downloaded from http://www.manpower.co.nz/research/studies.aspx

About the Survey
The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It is the most extensive forward-looking survey of its kind, unparalleled in its size, scope, longevity and area of focus. The Survey has been running for more than 47 years and is one of the most trusted surveys of employment activity in the world. The Manpower Employment Outlook Survey is based on interviews with over 61,000 public and private employers worldwide and is considered a highly respected economic indicator.

The Manpower Employment Outlook Survey is currently available for 36 countries and territories: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Costa Rica, Czech Republic, France, Germany, Greece, Guatemala, Hong Kong, Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Panama, Peru, Poland, Romania, Singapore, Spain, South Africa, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. The program began in the United States and Canada in 1962, and the United Kingdom was added in 1966. Mexico and Ireland launched the survey in 2002, and 13 additional countries were added to the program in 2003. New Zealand joined the program in 2004, China, India, Switzerland and Taiwan were added in 2005, and Argentina, Peru, Costa Rica and South Africa joined in 2006. Colombia, the Czech Republic, Greece, Guatemala, Poland and Romania joined in 2008, Hungary and Brazil were added in 2009, and Panama joined in 2010. For more information, visit the Manpower Inc. Web site at www.manpower.com and enter the Research Centre.

ENDS

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