Canterbury in New Zealand is likely to see its labor force expand substantially over the coming months.

This is according to a new report, which predicts thousands of new positions will be created, particularly within the utilities, manufacturing, IT and construction sectors, the New Zealand Herald reports.

Respondents to the survey by Hudson revealed they have growing concerns about skills shortages and management talent gaps in the area, with 32.7 per cent of businesses looking to increase hiring between July and September this year.

Only 10.7 per cent of those questioned in New Zealand said they had plans to reduce their workforce and the report suggested the rebuilding of Christchurch following the earthquake in late 2010.

"Local talent has been snapped up with aggressive salary hikes and competitive packages causing a lot of sideways movement in the industry," the study is quoted by Business Day as describing conditions on the South Island.

Statistics New Zealand recently reported employment rose by 30,000 to 2.214 million during the first quarter of 2010.

Posted by Sarah Dixon