Current business environment the new normal

Media statement Thursday, 20 December 2012

Current business environment the new normal

In an annual, end of year survey employers have indicated 2012 was similar to 2011 with more of the same expected next year, says David Lowe, Employment Services Manager, for the Employers and Manufacturers Association. (Full results are here)

"Current business conditions are looking more and more like the new normal," Mr Lowe said.

"Our End-of-Year Employment Round-Up Survey showed the number of businesses that increased their staff, as well as those that made staff redundant, remained the same in 2012 as 2011," he said.

"Last year 55 per cent of businesses increased their staff numbers, and this year the result was identical.

"For both last year and this year 63 per cent of businesses made no one redundant. In 2011 'quite a few or a lot' of people were made redundant by 13 per cent of businesses with about the same result this year (14 per cent).

"Finding skilled people remains a serious issue. 62 per cent of businesses rate it difficult, or very difficult, to attract suitable skilled candidates.

"Trial employment periods are now increasingly part of the employment landscape as everywhere else in the world, with 63 per cent of businesses saying they generally include them in job offers. This is up from 53 per cent a year ago.

"Employers are supportive of changes to health and safety laws and regulations in the wake of the Pike River Royal Commission Report.

"There is solid support for increasing employee involvement in health and safety policy development and practice, and also in penalties for non-compliance.

"Employers are now evenly split on Mondayising ANZAC and Waitangi Day, and for the reintroduction of youth rates, which is a change from earlier in the year.

"Employers submitted a total of 343 ideas that would encourage them to hire young people and others who have difficulty finding jobs. We will be studying these and making recommendations based on them to our politicians. It will be interesting to see if any are picked up.

"Our impression to date is that politicians are more interested in using the youth unemployment problem to score political points against each other than do anything about it."

ENDS

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