Canterbury quakes rattle business forecasts - survey

Proactive Cantabrians have assisted the launch of a recent survey in an attempt to understand and predict business related implications affected by the recent Canterbury earthquakes.

The Canterbury Employer’s Survey, which incorporates input from over 1,700 Canterbury businesses, will provide information to help government organisations and local businesses plan for potential setbacks in the future.

In the survey conducted by the Department of Labour in October, an attempt to measure how businesses responded to the disaster and what any ongoing challenges could arise have been analysed using feedback given by employers in the region.

As might have been expected, the earthquakes have had a negative effect on employment levels and revenue.

Industry sectors most affected by staff losses were most likely to have relocated to other regions, with nearly 60% of businesses in the Professional, Scientific and Technical sectors relocating all or part of their businesses due to the disruptions caused by the earthquakes.

Earthquake Support subsidies had only been given to under 50% of businesses surveyed where most businesses have said that they have helped keep their businesses running.

“While just over half of all workplaces reported staff levels did not change due to the earthquakes, in most industry sectors a higher proportion of businesses saw a reduction in staff numbers than an increase,” said Vasantha Krishnan, general manager of the Labour and Immigration Research Centre.

“The impact on revenue was greater, with only one-fifth of businesses maintaining revenue levels compared to 40% reporting a drop in revenue. About one-fifth of businesses reported higher revenue due to the earthquakes.”

Challenges facing Christchurch employers include difficulties retaining and attracting staff along with the renewing of insurance policies, especially for employers with fifty or more staff members who will find resolving insurance payments to be a further issue.

Over the next 12 months, most businesses are expected to move through an improving forecast, and say that staff levels will either be maintained or increased.

“Overall, positive long-term perceptions about quality of life in the region and strong hiring intentions suggest that negative impacts are seen by many as short term and will be overcome as the region gets back on its feet.”