N.Z. Workers Less Optimistic About Job Prospects

By Tracy Withers

Jan. 7 (Bloomberg) -- New Zealander workers are less optimistic about the outlook for employment and earnings, according to an index compiled by Westpac Banking Corp. and McDermott Miller Ltd.

The fourth-quarter employment confidence index slumped to a record-low 104 from 121.2 in the third quarter, according to a report released in Wellington today. A reading above 100 indicates most people are optimistic about employment prospects.

Confidence collapsed after New Zealand’s economy slumped into a recession last year and the jobless rate rose to a five- year high. Unemployment will probably keep rising in 2009 as the world’s largest economies contract, crimping exports and company profits.

“Employees have finally succumbed to the negativity that has pervaded the economy over the past year,” said Donna Purdue, senior economist at Westpac in Wellington. “Demand for workers has been satisfied and redundant workers will find it increasingly difficult to obtain work.”

Companies expect to fire more workers while profit and investment intentions are near record lows, according to an ANZ National Bank Ltd. survey published last month.

Westpac expects the jobless rate will rise to about 6 percent later this year from 4.2 percent in the third quarter of 2008.

Job Security

A net 26 percent of employees say jobs are hard to get compared with 25 percent who said jobs were plentiful in the third quarter, Westpac said today. The net number subtracts pessimists from optimists.

More New Zealanders expect jobs will be harder to get in a year, while job security has slumped to 1.8 percent from 12.2 percent in the third quarter.

Fewer of the 1,056 employees questioned expect wages will be higher in a year. The survey was conducted between Dec. 1 and Dec. 14 and has a margin of error of 2.5 percent.

To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.