New Zealand - Employment Confidence

The Westpac McDermott Miller Employment Confidence Index (a quarterly sample of 1500 representative New Zealand Households) indicates increased Employment Confidence.

With an index rating of over 100 indicating positive feelings, and an index rating of under 100 indicating a negative mood, the actual index for the 4th Quarter of 2004 increased from 130.6 (Q3) to 133.8. The Employment Confidence Index is based on the following questions:

1. Whether people feel that jobs are plentiful or hard to get right now.
2. What job opportunities will be like in a year's time
3. Whether they are earning more or less now compared to a year ago
4. What their earnings will be like in a year's time
5. How secure they feel in their present job

Questions 1 and 3 also provide data for the Current Employment Conditions Index and questions 2, 4 and 5 form the basis for an Employment Expectations Index. There was a sharp increase in the former as employees rated current employment conditions as favourable. 66% said jobs were plentiful in the December quarter compared with 59% in June, while people claiming jobs were hard to get fell to 13% (16% in June). Similarly, 40.2% said they earned more this year than last, compared with 35.5% in June.

However, the Employment Expectations Index is not quite so favourable as fewer (41%, compared to 44.8% in September) expect their incomes to improve in the coming year.

On HRM Guide at: New Zealand - Employment Confidence