NZ Employers Continue to Pull Back on Hiring
New Zealand Employers Continue to Pull Back on Hiring, According to Manpower’s Employment Outlook Survey
AUCKLAND, Sept. 9/Medianet International-AsiaNet/ --
The Manpower Employment Outlook Survey released today shows that the employment prospect for New Zealand job seekers has continued to weaken, as we go into the last quarter of 2008.
The survey of 770 employers across New Zealand reveals that employers intend to be cautious in their hiring plans for the fourth quarter of 2008, especially in comparison to the survey results reported in recent quarters.
New Zealand’s employment market appears to be in an extensive decline in the October – December quarter of 2008, with a Net Employment Outlook of +9% compared to +12% in the previous quarter. This Outlook represents a decline of three percentage points quarter-over-quarter, but more importantly signals a significant 17% downward decline, since 12months ago and does not yet appear to have bottomed.
According to Catherine Lo-Giacco, General Manager of Manpower New Zealand, “The New Zealand economy stalled in the first half of 2008; reducing company’s profits, so employers became more hesitant in their hiring plans. This decrease in demand for staff will continue to put pressure on New Zealand households, as they are also faced with increasing inflationary pressures, and cost of living largely due to hefty increases in petrol and rent costs, and many households need these jobs.
The recent survey data shows there is a pull back on hiring intention from the third quarter, with employers in all of the regions hesitant to take on additional staff. Both Auckland & Christchurch report a weakening outlook of +8% down one & four percentage points respectively, and similarly in Wellington, we are also seeing a decline in employer hiring intentions, down three percentage points, from +20% to +17%.
In comparison to the results 12 months ago, employers in all of the industry sectors have witnessed a significant decline in demand, particularly employers in the Wholesale & Trade and Mining & Construction sector; declining by four and 13 percentage points respectively; and at levels not seen since the New Zealand Manpower Employment Outlook Survey started in 2004. New Zealand’s recent strong downturn in the economy is weighing on the minds of employers. They are not conducting widespread layoffs across industry sectors, which are encouraging, yet we are not seeing much appetite to add staff either. ” said Lo-Giacco.