NZ Employment Data: Staff Numbers And Wages Tipped To Stay On Hold
October 23rd, 2009
The NZIER’s latest survey of the business mood has found firms are not expecting to lay off more staff in the December quarter, after chopping workers for the past 18 months. The survey also found businesses are not likely to boost wages either. Business confidence is now at its highest level for a decade, pointing to annual economic growth in excess of 3% next year.
A net 27% of firms expect business conditions to improve, up from a net 14% negative in the previous survey. But the forecaster warns there’s a big gap between what firms are saying about the future and what they are actually doing. Trading activity in the past quarter shows a net 20% of firms were negative, an improvement on the 35% negative in the June quarter. Companies’ expectations for their own future trading activity show a net 17% expect better times ahead, slightly higher than the long-run average.
The trading activity figures equate to annual economic growth over 3% by early next year, well ahead of most forecasts. But NZIER says there is often a gap between expectation and reality, which leads to disappointment.
Copyright © The Main Report Group
