New report indicates employers are 'ignoring' negative economic predictions
Job vacancies in New Zealand rebounded in the September quarter after the National Job Index registered a 3.9% increase in the last three months, according to the latest RCSA Jobs Report. The rebound came after the index fell by 8.8% in the previous quarter, and amid the threats of inflation, recession, and rising interest rates.
According to the report, which was released by the Recruitment, Consulting, and Staffing Association (RCSA), the level of job opportunities in September is also 20.5% higher than a year ago.
"This latest data indicates most employers are ignoring the negative narrative around inflation and interest rates and are forging ahead with the hiring process," RCSA CEO Charles Cameron said in a statement.
This also means that employers are making hiring decisions "based on [their] own immediate needs," and are not paying attention to the negative predictions of economic commentators, the report said.
Even then, flexible work opportunities went up by 3.6% in the previous quarter, according to the report, which said that employers are keeping an eye on the "unfulfilled predictions of economic downturn."
Permanent vacancies also increased 4%, which Cameron said indicates that employers prefer to lock in talents with them and put premium on stability amid skills shortages.
"Stronger growth in permanent role advertisements suggests that finding and 'locking in' talent remains the top priority for most New Zealand employers. Ordinarily we see employers prioritise flexibility in uncertain times, but huge talent shortages mean skills and stability remain king for NZ businesses right now," Cameron said.
Per industry, job opportunities in the accommodation and food services sector hit record levels in August after hitting 16.7%. A substantial increase was also reported in public administration after rising 22.4% in the September quarter.
"It's the public sector that really seems to be thriving. Government-funded employment initiatives and infrastructure projects is seeing that space boom," Cameron said.
Job opportunities in the retail and wholesale sector also increased by 8.4%, according to the report. There is also growing demand for business professionals, including finance, HR, marketing, legal, and engineering, with a 7% rise in demand for these workers.
On the other hand, job opportunities in the financial and insurance services sector are "surprisingly weak," with vacancies dropping 17.4%. The drop was attributed to the negative predictions in the economy.
"Employers in financial services are far less inclined to increase headcount right now. I guess it's not surprising this sector is more cautious in a climate of economic change, given its closeness to predictions of downturn," Cameron said.
