Workers see silver lining instead of black cloud

The hope of better job prospects and higher earnings in the year ahead has kept worker confidence steady in the June quarter, a new survey says.

The Westpac Dermott Miller Employment Confidence index is flat at 123.7. An index above 100 indicates there are more optimists than pessimists.

Workers are reassured by tightness in the job market and continued strong wage growth.

Low unemployment and strong employment growth in the first quarter suggested employers were retaining staff in expectation of an eventual upturn in the economy, Westpac economist Brendan O'Donovan said.

Workers were also more confident about the future than the present.

The Employment Expectations Index rose 3.1 points to a net 114.5.

And the number of people expecting to be on higher wages in a year rose 4.7 per cent to a net 43.6 per cent.

Rural workers were the most optimistic about the future, reflecting their exposure to the lower-valued NZ dollar's effect on export earnings.

Perceptions about current labour conditions were down 4.6 points to 137.6.

O'Donovan said the weakening dollar might continue to bolster people's hopes, "but we expect worker sentiment will continue to edge down toward a more neutral outlook ... "


HOPE FLOATS

* Employment Confidence index: Flat at 123.7

* Employment Expectations index: Up 3.1 to 114.5

* Number of people expecting a pay rise: Up 4.7pc to 43.6pc

- NZPA