NZ job market expected to strengthen - survey

The job market is expected to strengthen and potential employees are increasingly looking at staying in New Zealand for work instead of moving offshore, a recent survey has found.

However, there would still not be enough skilled local workers to fill all the job gaps and employers expected they would need to look overseas for staff to fill vacancies.

Findings from a survey by recruitment company Michael Page New Zealand found more than 40 per cent of the 548 executive and business leaders surveyed were expected to increase their staff numbers.

"The positive outlook for job opportunities coupled with a more subdued employment outlook in Australia is boosting New Zealand's recruitment market, as more professionals return home after working overseas than in the previous 12 months," the 2014/15 Salary and Employment Forecast said.

The survey also showed nearly 70 per cent of employers surveyed did not expect local staff to leave for overseas opportunities.

"In 2014 we are seeing more professionals returning home to New Zealand after working overseas compared to 2013," the company's regional director Pete Macauley said.

"We are also losing less people overall to the UK and Europe while more expatriates are exploring job opportunities in New Zealand due to flatter employment markets elsewhere in the world."

However, the higher availability of local workers was not enough to fill the talent gap, with 52 per cent of employers expecting a skills shortage, up from 48 per cent in last year's survey.

"However, while we are seeing an increasing number of professionals looking for a new role in New Zealand, it is not enough to fill the emerging void," Mr Macauley said.

"The talent gap is consistent across all sectors and industries, with previous freezes on entry-level recruitment a few years ago creating the highest demand at mid-level management."

The skills shortage was likely to continue over the next year and would place increased pressure on salaries, with 51 per cent of surveyed employers expecting salaries to rise above inflation.

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Key findings:

* 42 per cent of employers expect to increase headcount

* 67 per cent do not expect local staff to leave for overseas opportunities

* 52 per cent expect a professional skills shortage in the next 12 months, an increase from 48 per cent from last year

* 51 per cent expect salaries to rise above inflation