KEY POINTS:
Employment confidence has risen again to historically high levels, according to the Westpac McDermott Miller Employment Confidence survey.
The index rose to 131.0 in the March quarter from 130.8 in the December quarter.
Westpac economist Donna Purdue said at this level confidence was close to the highs reached in late 2004/early 2005 when employment was growing in excess of 4 per cent a year.
An index number over 100 indicates a majority of optimists.
The index is intended to provide an indication of the level of job security among workers and their wage expectations, and hence an insight into their willingness to spend.
"Employees continue to remain overwhelmingly optimistic about the current employment situation, with more workers than ever saying that jobs are plentiful now compared to a year ago," said Ms Purdue.
She said there was a degree of circumspection creeping into employee sentiment: fewer employees believe they are paid more now compared to a year ago and fewer expect to be earning more next year.
Of the survey's five component questions only two recorded improvements this quarter: those relating to how plentiful jobs are, and personal job security.
The proportion of respondents thinking jobs are plentiful increased from a net 48.4 per cent in December to 56.4 per cent in March -- the highest since the survey began in June 2004.
Perceptions about personal job security continued to creep higher, with a net 21.9 per cent of respondents saying that they expected their job security to increase over the coming year.
This was offset by declines in the questions relating to earnings. A net 36.3 per cent of respondents said they earn more now than a year ago, compared to a net 41.9 per cent in December.
Expectations about earnings in the coming year also fell, albeit to a lesser extent.
In addition, there was a small decline in perceptions about future job prospects.
Most respondents still believe there will be fewer job opportunities in 12 months time. A net -2.7 per cent expect fewer job opportunities compared to a net -2.4 per cent in December.
- NZPA
