Employment Optimism Plummets!

The TMP Job Index Survey results released today (26 November) shows that levels of permanent employment optimism have fallen sharply. This is in strong contrast to the previous three consecutive survey periods of high optimism.

Of the 1602 employers surveyed, 35.5% have indicated that they are planning to increase permanent staff numbers over the next six month, with 12.4% indicating they are anticipating a reduction in current staffing levels. This has resulted in a half yearly net effect of +23.0%, down a substantial 10.9% from the last survey and down 7.1% compared to the equivalent survey period last year.

TMP Worldwide, Australia and New Zealand’s largest recruitment company conducts the Job Index survey on a six monthly basis. The survey combines the expectations of key employment decision-makers, from all major industries, across the spectrum of different organisation sizes. Since its inception in 1997, this Index has proved to be an accurate and extremely well recognised employment indicator.

Dr Kaye McAulay, National Director of Strategy, TMP said the Upper North Island has recorded a substantial decline in permanent employment optimism from the previous survey period, - down 10.7%.

“The same has occurred for Lower North Island employers, with permanent employment optimism down 9.9% to a current net effect of +22.2%. This current result is also down by 11.4% compared to the equivalent survey period last year and is the least optimistic outlook recorded since the January – June 2000 survey period,” Dr McAulay said.

“South Island employers have recorded the most optimistic outlook for the coming six months with 34.4% of those surveyed expecting to increase staff numbers and only 9.7% anticipating current staffing levels to be reduced.

“This has resulted in a current net effect for the coming six months of +24.7% for the South Island, slightly above national expectations but down 14.3% compared to the previous survey period,” Dr McAulay said.

Overall employers from the majority of industries surveyed have recorded optimistic outlooks for the coming six months. Tourism was the only industry to record a negative outlook with a net effect of –3.7%, down a massive 26.3% from last survey and down 31.7% from the result recorded for the same survey period last year.

Industries recording buoyant levels of employment optimism for the next six months are Legal, Information Technology and Electronics.

Employment optimism has fallen across New Zealand small, medium sized and large business employers from the last survey period. Optimism among large business remains well below national expectations with 29.0% of large business employers surveyed indicating that they are planning to increase staff numbers over the next six months and 16.9% anticipating staffing level decreases. This has led to a current net effect of +12.2%, down 4.5% from the previous survey result and down 7.1% compared to the level of optimism recorded for the equivalent survey period last year.

“Conversely, small businesses have recorded the highest level of optimism with a net effect of +31.2%, but have also recorded the greatest decline in optimism from last survey, down 15.5%,” says Kaye McAulay.

“Medium sized businesses follow small business in terms of permanent employment optimism (net effect of +27.2%). This is down 14.4% from the previous survey period and is the least optimistic outlook recorded from medium sized businesses since the July – December 1999 survey period.”

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Government Initiative Finds Favour

The Department of Immigration’s proposed introduction of a Talent Visa Policy is well regarded by employers, according to results in the latest TMP Job Index Survey released today (November 26).

The proposed policy aims to make it easier for skilled and business migrants to obtain residency in New Zealand. 54.4% of employers surveyed indicated that they think the introduction of this policy would have a positive impact on their ability to recruit skilled labour, with only 24.0% thinking it wouldn’t. 21.5% of employers surveyed were undecided.

TMP Worldwide, Australia and Zealand’s largest recruitment company conducts the Job Index survey on a six monthly basis. The survey combines the expectations of key employment decision-makers, from all major industries, across the spectrum of different organisation sizes.

Dr Kaye McAulay, National Director of Strategy TMP said the results were quite consistent across all regions surveyed and reasonably consistent across small, medium sized and large organisations.

“Or the industries surveyed, Media and Tourism employers were the most likely to think the policy would have a positive impact on their ability to recruit skilled labour, whereas the Legal industry was the least likely,” Dr McAulay said.

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Under strict embargo until 0 01am Monday 26 November 2001

No English – No Job

English language ability requirements are seen as the biggest hindrance for immigrants trying to find employment in New Zealand, according to results in the latest TMP Job Index Survey released today (November 26).

58.3% of the employers surveyed considered the language requirement as the greatest hindrance, followed by 17.3% stating qualification process recognition, 13.7% cultural differences and 3.% difficulty of access to referees.

TMP Worldwide, Australia and Zealand’s largest recruitment company conducts the Job Index survey on a six monthly basis. The survey combines the expectations of key employment decision-makers, from all major industries, across the spectrum of different organisation sizes.

Dr Kaye McAulay, National Director of Strategy TMP said there was some variation evident across the regions surveyed, with English language ability requirements seen as the biggest hindrance by more employers from the Upper North Island (64.5%), than those from the Lower North Island (51.6%) and South Island (50.0%).

“Employers from the South Island were also somewhat more likely to consider cultural differences to be the aspect that most hinders immigrants trying to find employment in New Zealand,” Dr McAulay said.

“However, when it came to looking across industries, English language ability requirements were definitely seen as the greatest hindrance by all those surveyed, with employers from the Media, Chemical/Oil and Information Technology the most likely to consider so.

In contrast, employers from the Health/Med/Pharm and Legal industries were the most likely to consider the qualification recognition process to be the greatest hindrance. Employers from the Resources, Construction/Property, Electronics and Chemical/Oil considered cultural difference and employers from Tourism and Resources – difficulty of access to referees the greatest hindrance.

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THE TMP JOB INDEX SURVEY JAN – JUNE 2002

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