Future remains bright for job hunters

Hiring expectations among New Zealand businesses are the lowest they have been in two years, according to The Hudson Report: Employment Expectations but it's not all bad news.

The survey of 2,261 Hudson clients shows 36.6 per cent of those who responded to the survey expect to increase the number of people they employ during the first six months of next year.

However, the overall result is down 6.9 per cent compared to Hudson's previous survey forecasting the July to December 2005 period, which recorded a six-year high.

Hudson general manager Peter Harbidge said while the latest forecast showed a large drop on previous ones, employers were still positive and merely being cautious rather than unduly pessimistic.

"While the results represent a large drop on our previous reports, the results reflect a more cautious approach by employers over the short term, rather than a negative outlook.

"Nearly half the decline of 6.9 per cent can be accounted for by employers who are intending to maintain current staffing levels.

"The percentage of employers indicating an intention to decrease permanent employment levels over the coming six months has increased by only 1.6 per cent.

"The general election does appear to have contributed to a loss of confidence among hiring managers, but we would describe it more as a 'pause' than a downturn. In an uncertain political and economic climate, organisations are being responsibly cautious."

Despite the increase in oil prices in recent months, the transport sector was the highest increase of any sector against the previous survey recording an increase of 12.4 per cent - nearly ten per cent ahead of the only other sector that recorded an increase. That sector was advertising/marketing/media, which was up 2.6 per cent.

The unemployment rate for New Zealand (3.7 per cent) is the lowest level since the mid-1980s and is the lowest in the OECD (Household Labour Force Survey, August 2005.) Therefore the sourcing of skilled staff by employers remains a critical issue, which in some cases is restricting the ability of firms to expand. Retaining staff remains a focus for employers.
The Hudson survey indicates a positive outlook across all industries for the coming six months.

Industries that have indicated a more positive sentiment than the national average include: information technology (+55.8 per cent); construction, property and engineering (+53.4 per cent); telecommunications (+45.1 per cent); professional services (+45 per cent); and transport (+45 per cent).

The government sector nationwide fell 11.4 per cent to record a positive net effect of 37.5 per cent.

Information technology is the most positive segment of the economy with a net positive 55.8 per cent of employers stating that they intend to increase employment levels over the coming six months.

While 7.1 per cent down on the previous survey, Hudson national practice manager for IT&T Campbell Hepburn said the strong positive result in the information technology sector showed companies' continued commitment to technology.

"Companies are less questioning of technology and can understand the way it helps their business. Technology is now an indispensable part of many businesses and underpins a huge number of them," said Hepburn.