Job hiring expectations rise - report

A report released today shows job hiring expectations are on the rise over the next three months, with employers reporting a high level of confidence in the economy.

The latest `Hudson Report: Employment Expectations,' a recruitment and human resources firm's triannual publication, shows a net effect of 19.6 percent of employers intend to increase permanent staff levels during the January to March period, an 8.8 percent increase compared to the last quarter. Over 1230 employers were interviewed for the report.

"It's great to see such a positive start to the year. Many businesses have put the difficulties experienced during 2009 behind them and the Hudson reports confirms a continuing cautious confidence among New Zealand employees," Hudson New Zealand executive general manager Marc Burrage said.

The report showed that over the next three months 27.7 percent of employers planned to increase their headcount, rising from 21.9 percent. The number of those planning to cut staff decreased from 11.2 percent to 8.2 percent. And employers intending to hold current staff levels declined from 66.9 to 64.1 percent.

"It's important to recognise that the recovery may well be patchy as employers across the regions and industries are expressing varying levels of confidence around their intentions to hire," Mr Burrage said.

Unemployment in New Zealand increased by 6.5 percent in the September 2009 quarter. There are currently almost 150,000 people unemployed nationally.

A line of 2500 people queuing up for hours to apply for one of 150 jobs at a new supermarket in Auckland last week, painted a grim picture on employment conditions.

However, Hudson said the rate was slowing with Treasury expecting unemployment to peak lower than previously anticipated, and the Reserve Bank's continuous signal that interest rates would remain on hold until mid-year.

The report said professional services showed strong increase in confidence with 31.1 percent intending to hire. The financial services and insurance industry's sentiment was gradually improving with 21.2 percent of employers planning to increase staff numbers during the next three months.

In the government sector, hiring intentions were still conservative with 12.9 percent planning to employ permanent staff, resulting in a 4.6 people increase from the last quarter.

The report said the manufacturing sector's hiring expectations were now the strongest its been in the last two years, up 17.3 people with 18 percent of employers planning to hire -- a change from its negative and low sentiment throughout 2009.

The construction, property and engineering industry had remained steady, while the telecommunication sector reported planned to increase permanent staff as well.