INCREASE in employment is expected in all sectors of the economy next year with the building and construction sector taking the lead.
This is the outlook for labour market in the 2010 National Budget forecasts.
With a strengthening in economic growth next year, it was anticipated that there would be a sharp reversal of the moderation in employment growth this year.
In particular, the start of the liquefied natural gas (LNG) project and production of from two new mines next year should see strong demand for labour across the economy.
But major obstacle for Ramu NiCo in Madang province and Hidden Valley in Morobe province, could be to find suitably skilled labour.
The latter part of last year began to see signs of moderating employment growth as economic growth eased following global financial crisis.
This year to the June quarter, total private non-mining sector employment grew by 3.9%, down from 6.1% recorded in the year to March 2009.
Employment growth remained strong in the building and construction, financial, business and other services, and manufacturing. But falls in employment were recorded in the retail and transportation sectors.
The mineral sector recorded employment growth of 5.1% over the same period while all regions in PNG recorded employment growth in the year to June with the exception of the Islands and Southern regions.
Sustained economic expansion and stable macroeconomic environment in PNG had resulted in an increasing number of PNG locals entering the formal employment sector.
Higher wages and benefits from formal employment were expected to contribute towards improving the standard of living for those employed and their families.
The forecast saw this transition as a positive development for the economy as it gradually moved from being largely an agriculture based economy to one of greater diversity.