Kiwi job market steady, but unspectacular

10 April 2012

Kiwi job market steady, but unspectacular

The New Zealand employment market was steady and continued its double-digit growth over the past quarter, according to an analysis of more than 39,000 roles on Trade Me Jobs. The number of advertised vacancies was up 18 per cent on a year ago, echoing the 21 per cent increase seen in the fourth quarter of 2011.

Head of Trade Me Jobs, Pete Ashby, said the state of the Kiwi job market was quite different to one year ago. “In the same quarter last year, job and salary growth was surprisingly strong and exceeded our expectations, especially given the anticipated impact of the Christchurch earthquakes. This has been a key factor behind lower year-on-year growth, though there’s no question the market has softened.”

Salaries were “flat as a pancake” compared to a year ago (down 0.2%), and Mr Ashby attributed this to a lukewarm economy. “Employers’ confidence remains on tenterhooks with the economy in a weaker state than many predicted, and demand for skilled workers is softening. However, recent updates point to economic growth kicking in later this year as the post-quake rebuild ramps up.”

Hard hats, high viz vests & calculators prominent

Mr Ashby said it was no surprise to see the rebuilding effort in Christchurch driving massive growth in construction & architecture and trade & services roles, with listings up 65% and 47% respectively on a year ago. “As building sites emerge, and redevelopment plans are drawn up, the market is especially hot for site managers, labourers, machine operators, and painters & decorators.”

With the rebuild expected to take up to 20 years to complete, Mr Ashby said demand for different roles would wax and wane, but accountants would remain in constant demand. “As the economy heads in a positive direction, the need for numerate, financially savvy people increases as businesses grow and look to cope with the rising workload. We’ve seen listings from Christchurch employers and recruiters hunting these number-crunchers leap 60 per cent on a year ago.”

In the regions

There was an increase in job listings in the three major metropolitan centres, but Canterbury showed explosive growth, with advertised roles up 81% compared to a year ago, a period which included the February earthquake and its immediate aftermath. Both Wellington and Auckland were stagnant with job listing growth below the national average – up 3% and 4% respectively.

Mr Ashby said public sector employment confidence was down in the capital, as Government cost-cutting and reorganisation made employees anxious about their job security. “The nervousness in the state sector is dragging down the overall picture, with private sector employees much more upbeat, as set out in Westpac-McDermott Miller’s recent research.”

In Auckland, Manukau was a strong performer in terms of job listings with significant employer demand for IT programmers and testers, as well as accountants. Elsewhere in the City of Sails, the number of listings for accounting roles (up 43%) was also a stand-out, followed by construction (up 31%) and trades & services (up 13%).

Agriculture, fishing & forestry had a strong quarter in terms of listings growth, up 32% on a year ago. Mr Ashby said the cornerstone of the Kiwi economy “hit a rosy patch”, underpinned by the solid performance of dairy farming. “It will be interesting to see whether the 15-cent cut in the forecast pay-out announced by Fonterra last month has a knock-on effect and dents the hiring aspirations of the dairy sector.”

Crystal ball gazing

Mr Ashby said he expected to see several factors at play in the Kiwi job market over the coming months.

“We’re confident the employment market will keep shunting in the right direction, as economic growth ticks up in the second half of 2012. The rebuild in Christchurch is going to be a massive lever, as well as spending in the agricultural sector, and the return of consumer confidence in a slowly strengthening property market. On the flipside, continued pessimism in the public sector seems here to stay for some time.”

Trade Me Jobs employment survey results: January-March 2012

1. Listings growth by job: Q1/2012

2. Average rates of pay by job (full-time jobs only): Q1/2012

3. Listings growth by region for Q1/2012

4. Average rates of pay by region (full-time jobs only)

NB: Segments with less than 50 jobs excluded.

About Trade Me Jobs
More Kiwis visited Trade Me Jobs (www.trademe.co.nz/jobs) than any other job board in the 12 months to March 2012 (Source: Nielsen Net Ratings). Full details of pay by profession for full-time jobs listed between July and December 2011 were published in the Trade Me Jobs Salary Guide.

ENDS

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