Hiring expectations plateau as employers hold off

Manpower Employment Outlook Survey

Hiring expectations plateau as NZ employers hold off on growth plans: Manpower

Employers across NZ are holding off on making firm growth plans, as new waves of financial uncertainty circle the globe, according to the latest Manpower Employment Outlook Survey released today.

The survey of over 640 New Zealand employers indicates hiring intentions for the next three months have stalled. The seasonally adjusted Net Employment Outlook is at +16%, a slight decrease from last quarter (at +17%). Both the number of employers planning to either increase or decrease headcount have remained consistent (at 22 percent and seven percent respectively).

According to Mr Chris Riley, General Manager, Manpower New Zealand, employers are playing the waiting game.

"We're hearing varying reports on the state of the world business climate, with some predicting a global 'double dip' recession and others holding out hope for continued recovery. These sorts of conditions can make employers more cautious," said Mr Riley.

He added, "We often see a slight drop off in hiring in the lead up to Christmas, but it appears to be minimal this year. This is a good sign, and points to some resilience in the jobs market."

Employers in several sectors are reporting a slower hiring pace quarter-over-quarter, with the greatest declines seen in the Manufacturing sector (with an Outlook down to +12%, compared to +22% last quarter).

At the other end of the spectrum, employment optimism is strongest among employers in Finance, Insurance & Real Estate (Outlook of +26%, up from +20% last quarter), and Transport and Utilities (+25%, up from +11%).

"The employment market is always going to be varied across industry sectors and we're now seeing evidence of a two-speed labour market, with some industries returning to pre-recession levels faster than others," said Mr Riley.

"However, in reaching those levels, many industries are experiencing some turbulence as employers try to gauge the recovery. Sectors like Finance, Insurance and Real Estate and the Services sector generally (which includes IT and law) have seen high fluctuations in hiring expectations over the past year."

Ms Julie Saddington, Talent Management practice leader, Right Management, a Manpower company, says despite subdued hiring intentions, now is a good time for employers to take stock and work on their organisation from the inside out.

"Employers may not have a firm grip on what the near-term business climate holds in store, but what they are doing is going 'back to basics' with a focus on building the capability and productivity of their existing workforce through simple HR measures," Ms Saddington said.

"We're seeing many of our clients review and implement programmes that support good leadership, enhance productivity and encourage retention - these may sound like basic measures but they are what smart companies will invest in over the coming months, and ensure they get it right, before the real growth begins," she said.

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