The results of a new survey have shown that the work conditions of employees in New Zealand have improved, a very positive sign that the worst of the recession might have passed. 

According to the Westpac McDermott Miller employment confidence survey, the employment conditions index has increased to 77.8 from the previous 74.4, registered in the three months to September. Overall employment confidence has also risen, now sitting at 104.3, back to the level it was a year ago.

For Westpac senior economist Donna Purdue and chief economist Brendan O’Donovan, the most encouraging aspect of the survey was that the confidence was higher due to improved perceptions of current employment conditions, rather than just expectations about the future. “Still, the overall message is clearly that labour market conditions remain tough – just not as tough as they were back in September,” they warned.

The economists have also stated that, since employment growth is unlikely to keep pace with population growth, the unemployment rate is likely to continue to rise until mid-2010. The survey has shown that a net 16.6% of respondents said they expected plenty of job opportunities, up from 14.4% in the September quarter. This was the strongest response to the question in the survey’s history.

Respondents also expect to be earning more in the near future, with 36.2% expecting a salary increase, up from a net 34% in September.

The gap in employment confidence between public and private sector employees seems to be widening, as confidence in the private sector has been growing at a faster pace since June.

"This trend is strongest in the metropolitan centres where belief in an accelerating economic recovery appears to be held most strongly by the private sector, whereas public sector employment confidence continues to be restrained as a result of government policies to contain growth in its own expenditure," explained Richard Miller of McDermott Miller.