KEY POINTS:
Job hunters will continue to have plenty of opportunities this year, according to a survey of more than 1700 employers by recruitment firm Hudson.
It has just released part one of its Employment and HR Trends report, covering the six months to June this year that shows 35 per cent of companies surveyed will be looking to increase their staff numbers. But the survey doesn't say just where these people will come from.
However, the report says more than five times as many employers have indicated they intend to increase their permanent staffing levels (43.5 per cent) over those who intend a decrease (7.8 per cent).
Less than half of the companies surveyed say they expect to hold their staff levels steady.
And it is not just Auckland that will benefit from the continuing demand for staff, says the report, which was released last week and covers 19 core industries, from construction and manufacturing to retail and utilities. Positive net effects were recorded across all regions.
The Upper North Island maintained the growth momentum that was picked up in the six months to December last year, with employer sentiment rising.
The South Island continues to display the highest level of employer optimism across the regions.
The biggest spike has come in the IT industry, which recorded the highest level of employer sentiment of all industries surveyed for the fifth period running.
While down 8.4 per cent on Hudson's last survey (covering July-December last year), it says optimism among IT employers is "exceptionally strong", with a net of almost 60 per cent of companies expecting to increase permanent staff between now and June.
The telecommunications industry is showing the second-highest level of optimism across the industries. The report also shows employer sentiment in the professional services industry has strengthened, rising slightly to more than 50 per cent.
Roman Rogers, general manager of Hudson New Zealand, says strong but easing employer sentiment across much of the country reflects broader trends in the economy.
"Economic foundations are robust and balance sheets remain strong. But compared to the exuberant optimism felt six to 12 months ago, people are now much more circumspect when looking to the future.
"Employers in many industry sectors are reporting difficulty in finding skilled and unskilled staff.
"With unemployment at a 20-year low and labour market participation at a record high, an exceptionally tight labour market is now making itself felt in inflation."
He also says wage growth has risen to an all-time high.
Hudson's report also appears to suggest the heady days of contracting may be on the wane as employers move back to employing permanent staff.
Rogers says that of the 1747 employers surveyed nationally, 25 per cent increased their contracting/temporary workforce during July-December last year, 14.8 per cent decreased it and 59.5 per cent remained the same.
"This gives a net effect of plus 10.4 per cent, which is lower than that recorded for the January-June 2007 period," he says.
"These results reflect the preference of New Zealand employers to engage permanent staff over temporary/contract staff. [Employers] have only turned to this market to get them through the significantly busy period of the past 24 months."
Rogers also says that professional services employers have reported growing optimism, with sentiment rising to a "staggering 90 per cent".
"Hudson is seeing a rapid increase in demand for qualified staff in this sector and an increasing shortage of candidates in areas such as accounts payable, accounts receivable, paralegal, legal support and accounting support," he says.
"Employers in the transport/distribution sector have also reported an increase in optimism, with a net 33.3 per cent intending to increase permanent staff over the coming six months."
Heavily impacted by the high Kiwi dollar, manufacturing employers now intend to increase permanent staff levels over the coming six months, says the report.
While hiring expectations appear positive, with no real signs of the "war for talent" coming to an end soon, there is one area that will face a tightening of permanent staff, according to Rogers.
He says more than 35 per cent of large employers - those employing 200 or more people - reported they intend to increase permanent staff levels over the coming six months.
While high, this is lower than its last survey. Rogers attributes this drop to these organisations restricting their hiring intentions to "filling immediate needs only".
Contact Steve Hart via his website at: www.stevehart.co.nz
