The Westpac McDermott Miller employment index suggested the solid momentum seen during the first half of 2016 was being maintained into the second half.
Westpac senior economist Anne Boniface said the lift was broad-based, and employment confidence increased across almost all regions.
''Improving confidence is consistent with other indicators of labour market activity,'' she said.
Nationally, employment confidence rose 8.5 points to 110.1 points since the previous quarter, while Otago rose 9 points to 105.6 for the same period.
Otago was sitting in eighth place of the 11 regions, which all gained apart from the Bay of Plenty, which was flat with a 0.9 point decline to 103.4.
Otago Chamber of Commerce chief executive Dougal McGowan said the employment data underpinned a recent boost in business confidence, especially led by forward sales looking ''much brighter''.
The newfound employment confidence could be encouraged by low interest rates, or the start of the cruise ship season, and either people being confident in their present work, or seeing new employment opportunities around them, he said.
''It's following the trend of the past quarter, with more confidence. Dairy prices are up, low oil prices [remain] and people have more in their pocket to spend,'' Mr McGowan said.
Sales of cars and houses were up, as were the house prices, he said.
Mrs Boniface said despite the big lift in confidence, the ''soft spot'' in the labour market was still wages.
''Workers remain particularly circumspect about the prospect of higher wages over the year ahead,'' she said.
