Survey: Employer optimism returning

The manufacturing and services sector were the most optimistic in a new hiring intentions survey. Photo / Dean Purcell

New Zealand employers are more optimistic than they have been in two years, prompting speculation hiring activity could soon return to pre-recession levels.

The latest Manpower Employment Outlook Survey puts the seasonally adjusted net employment outlook at 18 per cent, up five per cent from the last quarter.

Job seekers should find the most opportunities in the manufacturing and services sectors, the survey of more the 630 employers said.

Manpower New Zealand managing director Lincoln Crawley said optimism among employers was increasing, but jobseekers still needed to be patient.

"It's not going to be a quick return to boom times," Crawley said.

While optimism has increased, the number of employers planning to increase hiring has dropped slightly - 22 per cent compared to 23 per cent in quarter two.

The number of employers planning to decrease headcount is up one per cent to 7 per cent from the previous quarter.

Crawley said the employment market was growing sustainably and at a manageable pace.

"Employers are showing responsible levels of optimism. The fact is that we don't want to see things ramp up too quickly - no one wants to see a wages breakout that has the potential to push up inflation and interest rates."

The manufacturing and services employers were the most optimistic across all sectors (24 per cent) followed by services at 23 per cent.

Meanwhile optimism in the finance, insurance and real estate sectors dropped 12 per cent to 19 per cent, while mining and construction dropped seven per cent to 17 per cent during the last quarter, indicating a "residual tentativeness" in those markets.

Optimism among employers in Auckland and Christchurch increased four per cent, while Wellington gained one per cent during the last quarter.

Crawley said employers needed to build strategies to allow them to cope with skills shortages as the unemployment rate began to fall.

"New Zealand, like many other parts of the world, is facing chronic skills shortages in several industries, some of which didn't disappear even during recession."

"Reskilling and upskilling existing employees and new hires, and looking for candidates outside traditional skill fields is going to become increasingly necessary. The last thing we want to see is the New Zealand recovery hindered by an inability to fill positions in key industries," he said.