Hints that the local IT industry is on the up have been strengthened by a report saying managers expect to hire more staff over the next six months.
The TMP/Hudson survey of 1841 employers found that a net 53.7% of IT companies expected to add employees, a 15.5 point increase over the July 2003 figure. IT was second only to the construction, property and engineering industry, which reported a net 55% intention to hire more staff.
Overall, net 35.9% of employers intend to increase staff numbers, the highest in five years, the Hudson report says. The net figure reflects the difference between the 44.9% who plan to add headcount and the 9.1% who expect to reduce staff levels.
Confidence is strongest in the South Island, where net 78.3% of IT companies expect to add staff. Overall, 50.2% of South Island businesses say they’ll be hiring and 6.1% will not — a net 44.1% positive response.
IT companies in the upper North Island reported a net 51.7% intention to add staff; in the lower North Island the figure was net 48.7%.
The report was produced by TMP/Hudson Global Resources, a recruitment and consulting company. TMP/Hudson says employers’ optimism is due to the recovering global economy, the strong New Zealand dollar, the $1.2 billion government surplus, and the “waning” of concerns about SARS and terrorism.
TMP/Hudson says the current unemployment rate of 4.4%, the lowest in 16 years, is another indicator of employer confidence.