World Cup triggers employer optimism

Photo / Dean Purcell

New Zealand employers have bucked a global downward trend for hiring intentions as they ride a wave of enthusiasm triggered by the Rugby World Cup.

The latest Manpower Employment Outlook Survey shows 29 per cent of Kiwi employers expect to hire more staff in the last three months of this year, than they did in the previous three months, with the net outlook in manufacturing (up nine per cent to 33 per cent) and services sector (up seven per cent to 30 per cent) among the most optimistic about hiring.

ManPowerGroup Australia and New Zealand managing director Lincoln Crawley said the Rugby World Cup was a major driver of employment optimism for the fourth quarter.

"The benefits and flow-on effects of the event are creating positive expectations among many New Zealand employers, particularly in manufacturing and hospitality," Crawley said.

Hiring intentions for construction and mining, although still high, fell during 11 per cent to 31 per cent in quarter four.

Crawley said the Christchurch rebuild had driven much of the construction demand this year.

The sentiment was reflected in the overall employment outlook for Christchurch, which rose 10 per cent to 32 per cent.

"New Zealand has turned a corner after the Christchurch earthquakes at the beginning of this year," said Crawley.

"The rebuilding effort is picking up speed and there is renewed energy and confidence in the region, which is also contributing to increased hiring intentions across the country."

But Crawley warned the excitement surrounding the Rugby World Cup was only masking the external economic pressures affecting New Zealand's neighbours.

"Regardless of the hype employers are still watching what's happening globally," she said.

"We've seen an upturn in contract and temporary placements, which suggest a reluctance from many employers to make more permanent hiring decisions, preferring to adopt a 'wait and see' approach".

New Zealand employers were one of the few to report an improved net employment outlook in the Asia-Pacific region since the last quarter, exceeding employer optimism reported in Australia (16 per cent), China (20 per cent), Hong Kong (20 per cent), and Japan (10 per cent).

"New Zealand employers are the most optimistic they have been since the end of 2007 - we're clearly running at a different pace to the rest of the world right now, and that pace involves a rugby ball in one hand ad giant kiwi flag in the other," said Crawley.

- NZ HERALD ONLINE