Employment optimism on the rise

Cashmanager | 8 years ago

Employment confidence among New Zealand businesses has been described as "mildly optimistic" as analysis of the market in the third quarter of 2013 is unveiled. The Westpac McDermott Miller Employment Confidence Index experienced a slight rise in the three months to December 2013, making it the second-highest reading of the past two years. Some regional differentiations have emerged across the country. Between the September and December quarters, the Bay of Plenty saw its confidence improve 10.5 points. Wellington ranked in second place with growth of 7.7 points. This optimism was not evident in some areas, with Waikato experiencing a slump of 11.1 points over the same period and Southland following close behind with a 9.6-point drop. Nevertheless, current conditions have improved for the fourth time in five quarters. There is still, however, some way to go before pre-recession levels are reached. The index showed there is still ongoing caution surrounding labour market conditions, not least because of the subdued increase in earnings and low expectations for future growth. Experts warned how low inflation is often followed by low wage growth - a situation that many fear is already taking place across New Zealand. This may become more important than ever, as the index showed inflation dropped to a 14-year low during 2013 and is likely to have had an impact on recent pay negotiations. Nonetheless, Westpac and McDermott Miller said conditions are generally improving for job seekers, as the index showed a perceived rise in opportunities. Business surveys have reflected that firms' employment intentions are currently at their highest for several years, while online job advertisements have seen a year-on-year rise. Companies choosing to take on new staff in 2014 may want to train their new recruits in the use of small business software and other tools used to ensure your company can run smoothly.