Employment survey data for the September quarter released yesterday shows confidence recovering from its June dip but still remaining weak.
However, there is a feeling in the South the actual picture is much bleaker than that painted by the Westpac McDermott Miller Employment Confidence Index.
The index shows Otago with a confidence reading of 97.9 points and Southland with 101.6.
A reading above 100 indicates more optimists than pessimists.
Otago-Southland Employers' Association chief executive John Scandrett said the Otago and Southland survey results painted a dull picture overall.
"In Otago, we are seeing another flat result, which continues to present mid-range, rather mediocre sentiment on the employee confidence scene.
"As far as Southland is concerned, I note that the survey was conducted very early in September and as a consequence, the news about the recent Tiwai Point and Alliance Mataura plant employee downsizing would not have been considered. I feel that had this information been factored into the Southland survey, a most negative outcome would have been seen there," he said.
The Tiwai Point aluminium smelter will soon make 65 people redundant and the Alliance Group announced on Friday 325 jobs would go from its Mataura plant, although 260 sheep meatworkers would be offered the opportunity to shift to Lorneville, near Invercargill.
Mr Scandrett said the Alliance announcement was "creating a lot of noise" in the region.
Westpac chief economist Dominick Stephens said recent news on jobs had been poor.
It included another disappointing employment report for the June quarter.
"But people also speak from experience and their continued pessimism about job opportunities suggests that unemployment remained high through the September quarter," he said.
Employment confidence in Canterbury bounced back and once again clearly led the rest of the country, with Cantabrians notably more upbeat about future job opportunities.
That was another sign the economy was increasingly becoming "two-speed". But despite growing demand for reconstruction-related work, yesterday's survey results suggested wage pressures remained fairly subdued, Mr Stephens said.
The survey was conducted between September 1 and 9 with a sample size of 1553. The margin of error was 2.5%. McDermott Miller strategy planning managing director Richard Miller said private sector employees remained more confident than their public sector counterparts. The private sector figure rose slightly, from 100.5 to 101.4.
Personal job security expectations of private sector employees had lifted. Private sector workers were more confident than public sector employees on four of the five questions making up the index. The exception was earnings now compared with a year ago, Mr Miller said.
A net 19.7% of private sector employees felt their incomes were up on a year ago but that was exceeded by the 24.5% of public sector employees who believed they were better off.
Public sector employees were still involved in restructuring but their September results suggested they were adapting to the environment and did not expect further deterioration in their job security, he said.
Private sector employment confidence showed signs of having bottomed out but remained neutral.
