Employees bullish on job market

Workers continue to believe jobs are plentiful but they are increasingly less certain about longer-term prospects, a survey shows.

The Westpac McDermott Miller quarterly sample of 1500 households found that in the three months to June workers had become marginally more optimistic about job security and remained upbeat about their expected earnings.

A net 37.7 per cent of respondents said they earned more this year than last, up from 36.2 per cent.

But a net 5.1 per cent of workers expected jobs would be harder to get in a year's time, the first time expectations had turned negative since the survey started in June last year.

In the March quarter, a net 0.8 per cent thought jobs would be more plentiful, a net 5 per cent in December, 2004 and a net 5.5 per cent in September.

Westpac said employees continued to rate employment conditions as extremely favourable.

Those saying jobs were plentiful was 66 per cent in June, down from 67 per cent in March, while those who thought jobs were harder to get rose to 13 per cent from 12 per cent.

Westpac chief economist Brendan O'Donovan said labour shortages meant employees remained upbeat about job opportunities.

He said the overall strength of worker and consumer confidence was sustaining retail sales and the economy at a time when many exporters and import-competing firms were struggling.

The index seeks to provide an indication of job security levels and, hence, an insight into workers' willingness to spend.

Westpac said confidence appeared to be reflecting the state of the housing market, with workers in the metropolitan centres having become less optimistic about the employment situation. In contrast, secondary regions, which were still enjoying rapid house price gains, saw confidence increase.

An Employment Confidence Index produced from the survey dropped among metropolitan workers from 132.7 in the March quarter to 130.1 in June. In the secondary centres, the index rose from 130.3 to 132.2.

In rural areas, the index rose from 128.3 to 129.4. Over the whole country, employee confidence eased slightly from 131.3 to 130.2. An index number above 100 indicates more optimists than pessimists.

- NZPA