Employers wash off RWC fever for 2012

Hiring intentions will soften for the first quarter of 2012, according to the latest Manpower Employment Outlook Survey of over 650 New Zealand employers.

The Rugby World Cup buzz has been and gone bringing New Zealand employers back to earth regarding employment prospects.

Judging by the country’s Net Employment Outlook, adjusted for seasonal variations, employment rates decreased by 3 percentage points quarter-over-quarter on par with the outlook for this time last year at +18%.

Several industry sectors are feeling the sharp end of renewed global market uncertainty more than others, with employers in the ‘manufacturing’ sector reporting a significant drop in hiring intensions down 20 percentage points from Quarter 4 to +14%.

Sharing the same downward outlook, ‘mining & construction’ sector employers continue to cut back on hiring intensions, dropping 21 percentage points to +9%.

‘Finance’, ‘insurance & real estate’ employers are reporting negative hiring intentions for the first time since mid-2009, with a Net Employment Outlook dropping 18 percentage points from Q4 2011 to -3%.

Lincoln Crawley, managing director of ManpowerGroup Australia and New Zealand, said the slight decrease in hires in the employment market might continue through the 2012 year.

“The drop in hiring intentions is partly a correction in the market after the hype of the Rugby World Cup fever, which inflated optimism for the last quarter of 2011, and can also be attributed to the renewed threat of a double-dip recession, as market woes in Europe continue to weigh in employer confidence.”

In regional contexts, Christchurch employers report the most optimistic hiring plans with a Net Employment Outlook of +26%. Auckland employers are reporting hopeful hiring intentions with an Outlook of +17%, followed by Wellington’s cautiously optimistic Outlook standing at +7%.

Comparing the first Quarter of 2012 with Q1 2011, the Christchurch Outlook is 11 percentage points stronger in hiring plans, with Wellington reporting an 11 percentage point drop. However, Auckland hiring prospects will remain fairly stable.

Crawley has emphasised on how the outflow of New Zealand workers needs to be addressed with the establishment of a national taskforce with government, industry, immigration and education representatives working together.

“Training up our current workforce and using strategic, targeted global talent solutions will play a role in creating a sustainable national workforce that can lead us into the future.”