Steady hiring pace expected to continue in New Zealand

12 June 2012

Steady hiring pace expected to continue in New Zealand for Q3 2012: Manpower Employment Outlook Survey

New Zealand – The results of the Manpower Employment Outlook Survey released today reveal that Kiwi employers expect the hiring pace to remain steady for the coming quarter. The Net Employment Outlook of +17% is relatively stable when compared to the previous quarter and the same period last year, and indicates that prospects for job seekers will remain upbeat for the next three months. Opportunities for job seekers are expected to be strongest in the Mining & Construction sector in the quarter ahead.

The survey of over 650 employers in New Zealand found that 25 per cent of employers expect to increase hiring, while 9 per cent of employers plan to trim payrolls. Once adjusted to remove seasonal variations in the data, the country’s Net Employment Outlook is +17%. According to Lincoln Crawley, Managing Director of ManpowerGroup Australia and New Zealand, Kiwi employers are in a holding pattern while they wait for expected growth from rebuilding projects in the Christchurch, the vast majority of which still remain in the planning stages.

“In May, the New Zealand dollar fell to its lowest point in three months and the unemployment rate jumped to 6.7, signalling a slowdown that is making employers more cautious in the near term. Despite this, employers are quietly confident, with the impending rebuild fuelling optimism, particularly in the Mining & Construction and Transport & Utilities sectors,” said Mr. Crawley.

Mr. Crawley has emphasised that planning for the rebuild is going to be crucial, as the estimated need for workers will outstrip the available supply of workers currently in Christchurch. “Employers waiting for the rebuild to begin should use this time effectively in order to ensure they have the talent strategies in place that will let them respond quickly once these projects take off. Without this, the rebuild may turn to ‘organised chaos,’ as employers struggle to recruit the workers needed to complete the rebuild effectively – particularly engineers and skilled trades workers,” said Mr. Crawley.

“We are predicting a huge influx of fly-in/fly-out workers to the region as a way to fulfil recruitment needs. This workforce strategy is common for places such as remote Australian mining towns, but unusual in the New Zealand market. However, an influx of temporary workers can be complex to manage and New Zealand should plan ahead for how they accommodate and integrate these workers.”

In a sector-by-sector breakdown, employer optimism fell considerably in the Finance, Insurance & Real Estate sector. The Net Employment Outlook dropped 10 percentage points quarter-over-quarter and now stands at a conservative +8%. Hiring intentions in this sector have fluctuated dramatically in the past several quarters due to the uncertainty caused by ongoing instability in the global marketplace.Employers in Mining & Construction sector report the strongest hiring intentions, buoyed by the anticipated demand in advance of the Christchurch rebuild efforts. The Net Employment Outlook stands at a solid +29% and is up 11 percentage points from last quarter.

The Transport and Utilities sector forecast remained strong, with employers reporting a Net Employment Outlook of +27%, while third-quarter Outlooks remained relatively stable when compared with last quarter in the Manufacturing, Public Administration and Services sectors. Not surprisingly among the regions, employers in Christchurch reported the strongest hiring intentions with a Net Employment Outlook of +26%, while employers in Auckland and Wellington are a bit less optimistic, reporting Net Employment Outlooks of +16% and +12%, respectively.

“Employers may not have a clear view of what challenges lie ahead of them, but what they can do now is focus on building the capability of their existing workforce and look to source the talent that will be the right fit for these upcoming opportunities,” Mr. Crawley said.

“The message is one of reassurance for job seekers, as employers remain positive in spite of flagging economic indicators. The rebuild is a great opportunity for anyone who wants to get involved, Job seekers who are interested should visit Manpower’s “Rebuild Our City” portal (https://www.manpower.co.nz/rebuildourcity/) as a starting point for their job search.”

Year-on-year
change
National +17% 0% -1%
Finance, Insurance & Real Estate +8% -10% -12%
Mining & Construction +29% +11% -10%
Manufacturing +7% 0% -15%
Transport & Utilities +27% -1% +6%
Public
Admin/Education +16% -1% +10%
Services +22% +1% -1%
Wholesale & Retail Trade +13% -4% +2%

ends

© Scoop Media