Jobs outlook getting gloomy

The outlook for jobseekers is becoming more bleak, with a new study showing more employers plan to shed staff in the next three months.

One in five bosses are expecting to cut jobs in the second quarter, according to the latest employment outlook survey by employment services firm Manpower.

At the same time, the number of bosses planning to take on new people has dropped to 13 per cent.

And despite rising unemployment at home, some businesses are still looking overseas to fill top roles.

In the same quarter last year, only one in 10 employers were planning to shed jobs and a third were looking to take on more staff.

Manpower New Zealand general manager Catherine LoGiacco said the figures, from a survey of 800 employers, were the worst since the report began in 2004.

Manufacturing, finance and real estate industries had been particularly hard-hit and middle management and frontline staff were likely to be worst affected by layoffs.

"In normal circumstances the jobs that are hit the earliest are the entry level jobs, but that's not necessarily the case here," she said. "A lot of industries are taking out that middle layer."

Wellington saw the steepest drop in confidence since the previous survey, particularly in the manufacturing sector, where 40 per cent of employers were planning layoffs.

Jason Walker, New Zealand managing director for recruitment company Hays, said despite the downturn, some employers were still struggling to find the right people to fill key roles.

Engineers and specialists for the power, mining, oil and gas industries were particularly hard to find, he said.

"A lot of New Zealanders are coming back but we're still not seeing the right skills coming into the market."

Kirsty Cels, associate director for recruitment firm OCG, said jobs were still available in utility companies, local government and the fast food and consumer goods industries.

"There are still business-critical roles that need to be filled out there."

She said some companies were looking overseas to find the right skills to fill key vacancies.

"While initially there may be more people to choose from, the core of really talented people in New Zealand is still small."

Employers and Manufacturers Association communications manager Gilbert Peterson said Auckland was undoubtedly bearing the brunt of the recession.

But he said many companies, particularly those in healthcare, IT and accounting, were doing well and looking for staff. "They're not exactly finding it easy, but they can still see opportunities for growth."

Unemployment rose to 4.6 per cent in the last three months of 2008, with the number of people out of work topping 100,000 for the first time since 2002.

Northland, Gisborne-Hawke's Bay and Auckland have lost the most jobs since last year, while employment rates have improved in Otago and the Manawatu-Wanganui region.

Social development and employment minister Paula Bennett wouldn't comment on the Manpower survey, but said it was always going to be a tough year for employers and their staff.

The Government has promised to help retain jobs through subsidising a nine-day working fortnight for companies with more than 100 employees.

Bennett said Work and Income has 6000 jobs on its books. "This Government believes it's better to be in work than on a benefit, so get a job - any job - and get ready for when the economy improves."