12 Jul 2010

Firms hesitant about hiring permanent workers - contractors preferred

6:26 am on 12 July 2010

Companies are hesitant about employing extra permanent staff, as the economy muddles along towards recovery.

A quarterly survey of employment expectations by Hudson found a net 20% plan on hiring more permanent staff in the next three months, up slightly on the previous survey.

Hudson NZ general manager Marc Burrage says conmpanies are keener to employ contract workers to complete recession-delayed projects, as that allows them to increase, or decrease, employee numbers quickly if need be.

He says sentiment to employ more people in the next quarter is strongest in the IT, private healthcare, fast moving consumer goods and the financial services sector.

More than 1100 businesses were questioned in the nationwide survey.