Bosses are hiring as quake effect felt

The rebuilding of Christchurch is stimulating New Zealand's labour market, a survey has found. File photo / Mark Mitchell

The rebuilding of Christchurch is already stimulating New Zealand's labour market, a survey has found.

And the boss of the company that carried out the research says skill shortages and corresponding wage inflation may be on the horizon in Canterbury - even in sectors outside the construction industry.

The latest Hudson Report Employment Expectations Survey found a net 22 per cent of New Zealand employers were planning to increase permanent staff levels in the July to September quarter - a 2 per cent increase on the previous period.

The net percentage is calculated by subtracting the number of employers planning to decrease staff from those intending to increase employee numbers, meaning 32.7 per cent of the 1151 employers surveyed were making plans to take on new workers in the next quarter.

"The overall trend line of employer sentiment is steadily tracking up from its lowest point in April to June 2009," said Marc Burrage, executive general manager of Hudson New Zealand, a recruitment firm.

Hiring intentions in the South Island were stronger than they were nationally, with a net 43 per cent of employers planning to take on permanent staff - 20.4 per cent more than before the first earthquake hit Christchurch late last year.

Unsurprisingly, the South Island's building and construction industry was at record levels of sentiment, with a net 83.3 per cent of employers planning to hire new permanent workers between July and September.

Burrage said the survey suggested other sectors in Christchurch such as manufacturing, information technology and utilities would also require large numbers of new staff.

Skellerup acting chief executive David Mair said the Canterbury-based, listed manufacturer had been trying to recruit staff but was finding it difficult.

The survey also found manufacturing, IT and utilities sectors outside Christchurch were experiencing increased sentiment, as resources were diverted south as a result of the quakes.

"What we are waiting to see is what the [Canterbury] labour market numbers settle at, post earthquake - how much supply there is for the demand locally and what [labour] needs to be sourced from further afield," Burrage said.

He said wage inflation was a logical outcome if staff shortages hit the region, although it was still too early to say how much wages might increase.

The survey found overall hiring intentions in the upper North Island had increased by 2.3 per cent to a net 23.2 per cent.

But in the lower North Island sentiment had declined by 5.1 per cent to just 13 per cent.

"[The] decline is largely driven by the decreasing hiring intentions among government employers, and the flow-on effects this has on related businesses supporting the public sector," the survey said.

The study also found education, government healthcare and retail industries were reporting declining hiring intentions for the coming quarter, while employers in the wholesale/distribution and professional services industries reported no change.

Meanwhile, a report released yesterday by a global accounting and consultancy firm Grant Thornton said nearly two-thirds of New Zealand businesses had been affected by the Canterbury earthquakes.

Tim Keenan, a partner in Grant Thornton New Zealand's Christchurch office, said one of the main problems facing businesses in the disaster-ravaged city was a shrinking talent pool for staff.

"With it being unlikely that people, outside of the construction sector, will move to Christchurch in the medium term, the demand impact for talent and skills is likely to have an inflationary effect on wages and salaries," he said.

"A critical focus of employers in the region is the retention strategies they are executing in their businesses as this demand for talent rises."

JOB OUTLOOK

Upcoming quarter - July to September

32.7pc of New Zealand employers planning to increase staff

56.6pc plan to hold levels steady

10.7pc planning to cut staff