Hiring in NZ expected to pick up at start of 2014
New data indicates hiring in New Zealand expected to pick up in first three months of 2014:
Manpower Employment Outlook Survey Q1 2014
NEW ZEALAND (10 December 2013): The latest Manpower Employment Outlook Survey results show hiring in New Zealand is excepted to pick up in 2014, with employers across the nation reporting a Net Employment Outlook of +21%.
The survey, which asks 650 New Zealand employers about their hiring plans for the coming quarter, found that 28 per cent of employers expect to increase hiring in Q1 next year, 9 per cent plan to decrease hiring, and 62 per cent plan on making no changes. This sees a 4 percentage point rise in the Net Employment Outlook to +21% - both quarter-over-quarter and year-over-year.
Lincoln Crawley, Managing Director of ManpowerGroup Australia and New Zealand, said the survey results reflect an expansion in the New Zealand market.
“New Zealand’s economic indicators have taken a markedly stronger tone over the course of 2013. However, this growth has not yet filtered through to all parts of the market and consistency in the demand for labour is lumpy.
“Although we are seeing increased positivity in the market, employers are still showing caution and hesitancy to increase permanent headcount while it is unclear exactly when overall business growth will peak.
“In Auckland and Christchurch, the mood in the employment market is optimistic with strong hiring intensions due to significant investment in infrastructure and new home building in both regions. This activity is now starting to translate into new jobs in construction, utilities and transport,” he said.
Mr Crawley warned that access to skills will be a major concern in 2014.
“The sheer volume of work that is expected next year will absorb most available labour in market, specifically highly skilled trade workers and engineers required for construction projects.
“New Zealand’s employment issues in the coming year will not simply be about the availability of labour, it will also be about that labour being work-ready. We’re concerned that the majority of the available labour does not hold the right skills to participate in the rebuild, which could ultimately hold up construction. ManpowerGroup • Level 22, Tower 2, Darling Park, 201 Sussex Street, Sydney NSW 2000 • www.manpowergroup.com.au
“We are encouraging all organisations to start planning for the talent they will need in the next 12 months; labour is already becoming scare in some regions, the unemployment rate in the Canterbury region was 4.2% in the quarter to September, with male unemployment sitting at 3.8%,” Mr Crawley said.
Across the cities; the hiring outlook in Auckland improves 5 percentage points to a Net Employment Outlook of +21%, in Wellington employers indicated that hiring would increase by 7 percentage points to +21%. Employers in Christchurch expect a slight fall in hiring expectation, and the forecast of +20% reflects the inconsistent nature of demand in the area at the moment.
In the industry sectors, hiring in Wholesale and Retail Trade is expected to rise 8 percentage points to +23%, and employers in the Manufacturing sector reported an expected increase of 3 percentage points with the Outlook improving to +11%. Employers in the Services sector expect to increase their hiring outlook by 2 percentage points to a Net Employment Outlook of +24%.
In the Finance, Insurance and Real Estate sector employers’ hiring outlook is unchanged from the prior quarter and stands at an optimistic +25%.
Employers in Mining and Construction, and Transport and Utilities expect a slight fall in hiring, reporting Net Employment Outlooks of +26% and +22%, respectively, for the first three months of the year. The Public Administration and Education sector also expects a minor drop in hiring, as the Outlook declines 1 percentage point to +15%.
Mr Crawley said job seekers can expect conditions to improve next year.
“Currently, candidates are expressing frustration in understanding what the market is doing. There has been a lot of talk about growth which has been slow to flow through into jobs on the ground, however, these results suggest that employers may be growing more confident.
Auckland +21% +5% +4%
Christchurch +20% -2% +8%
Wellington +21% +7% +4%