Optimistic employers looking to hire staff

By ELLEN READ


Nearly half of businesses plan to hire more staff in the next six months.

The latest Hudson Report shows a net 41.7 per cent of employers will be looking for more workers - the highest level in six years.

Coming when the country's unemployment level is at a 16-year low, it strengthens views that interest rates will rise again next week.

The hiring outlook is positive across all industries surveyed, with eight of 14 sectors sitting above the 41.7 per cent national average in the recruitment consultancy's six-monthly report.

The most optimistic are telecommunications employers (74.5 per cent expect to increase staff numbers), information technology (56.1 per cent), professional services (55.4 per cent) and construction/property/engineering (51.1 per cent).

The largest rise in optimism was in the transport sector while the construction industry showed the biggest fall.

"We're witnessing a strong demand for the knowledge worker, which is likely to translate into wage pressure in the employment market," said Greg Thompson, Hudson's New Zealand general manager.

"Skill shortages are becoming more evident and staff retention is becoming a mission-critical issue as replacement costs and downtime can have a major impact on profitability," he said.

Accepted industry figures showed that losing a staff member had the equivalent cost of up to four times his or her salary, meaning that it paid employers to invest in their employees, Thompson said.

"Not only does it develop their skills and careers and boost retention levels, it has a positive impact on the bottom line."

Hiring intentions extended across all sizes of business with small, medium and large companies all intending to recruit more than in the previous Hudson survey.

Most employers plan to keep contract and temporary staffing levels constant over the next six months, although a net 15.4 per cent are expecting increases.

Thompson said the skills squeeze may mean employers found it harder to get quality permanent candidates so they were opting for a temporary solution.

On the flipside, some job seekers were choosing contract or temporary positions because they offered more flexibility and there were plenty of job opportunities available, he said.

The report, formerly known as the Job Index Survey, asked 1848 employers nationwide about hiring permanent, fulltime staff in the half-year ahead.

The tight labour market is one factor underpinning economists' expectations of an interest rate hike next week.

They say the pace of job growth in the economy will create inflationary pressure if sustained.

With unemployment at a 16-year low of 4.3 per cent, and 61,000 jobs created in the year to March 31, the official cash rate is forecast to rise 25 basis points to 5.75 per cent next week when the Reserve Bank issues its quarterly monetary policy statement.

Alongside strong employment growth, income growth and strong domestic demand are seen forcing the Reserve Bank's hand.


WHO'S HIRING

Percentage of employers by sector who expect to hire more staff in the next six months:

Telcos 74.5 per cent

IT 56.1 per cent

Professional services 55.4 per cent

Construction/property/ engineering 51.1 per cent