EMA survey says employment on hold

Businesses are taking a wait-and-see approach to employment this year rather than panic stations.

“While most businesses aren’t planning to downsize, they are putting up their prices and not taking on new staff,” said David Lowe, the Employers and Manufacturers Association (EMA) manager of employment services. “But they seem more uncertain about the future rather than expecting a rout; no one is expecting to crash and burn,” he said.

These are among findings from the 932 respondents to an inaugural online survey of employment plans conducted by the EMA (Northern) last month.

Disregarding the contributions to their employees KiwiSaver accounts, 81 per cent of employers say they will increase staff wages this year.

The most common increase band is 2-3 per cent (for 36 per cent) then 4-5 per cent (for 26 per cent), followed by 1-2 per cent (for 12 per cent). Seven per cent say they will give more than a five per cent pay rise.

When staff leave, 50 per cent of employers won’t replace them. Only 21 per cent say they would definitely replace them.

Staff being made redundant or not replaced are just as likely to be skilled (for 27 per cent of respondents) as unskilled (28 per cent), or both skilled and unskilled (45 per cent).

But employers report they had noticed in the previous three months it has been easier to hire skilled staff (71 per cent) though slightly harder to hire unskilled staff (for 52 per cent).