Employers more cautious about hiring staff

Businesses are taking an increasingly cautious approach to employing new staff, a survey has revealed.

The Hudson Report: Hiring Expectations released today shows employers were less likely to hire new staff from July to December 2006 than they were for the same six-month period in 2005.

The nationwide six-monthly survey of 1705 Hudson clients showed a positive net effect of 36 per cent for the period July to December 2006.

Net effect refers to employers' expected increase in staff levels less the expected decrease.

Hudson general manager Marc Burrage said the survey reflected continuing cautiousness by businesses in taking on employees, and was in line with Treasury expectations of muted growth in 2006.

"Feedback from our clients reinforces that employers are more cautious about the future than any of the previous four survey periods," he said.

"However, 46 per cent of those surveyed thought employment numbers would remain steady over the next six months, which is a similar number to the previous two survey periods."

- NZPA