WELLINGTON - Skill shortages are hurting the investment and expansion plans of businesses, a Wellington poll shows.
Accountants Sherwin Chan and Walshe's bi-monthly survey of 291 businesses selected randomly in greater Wellington last week shows 42 per cent have put off investment because they cannot fill skilled jobs.
The vacancyrate for skilled workers is quite high. Thirty-five per cent of respondents said they had vacancies for skilled workers.
Nearly 60 per cent of respondents said their firms' ability to expand output was being hit as a result.
The survey highlights falling confidence in the economic outlook. It shows a gap between the respondents' trading expectations for their own businesses and their expectations for the economy.
Many respondents expected their trading conditions in the next six months to stay the same (46 per cent). Thirty two per cent expected their trading positions to get better or much better, down from 38 per cent in August.
Only 19 per cent expected their own trading conditions to get worse or much worse, up from 13 per cent in August.
Their view of the New Zealand economy is pessimistic, with 48 per cent expecting the economy to get worse or much worse in the next six months, well up on 28 per cent in August.
Only 9 per cent expected it to get better or much better, compared with 16 per cent in August. Thirty-six per cent expected it to stay the same, down from 45 per cent in August.
Respondents gave several reasons for their belief that the economic outlook would deteriorate.
Growth appeared to be reliant on consumer spending, interest rates were set to rise and inflation was also increasing, some said.
"The New Zealand dollar remains high, I don't think the flow of migration will get better and there might be an outflow," one respondent said.
Another said the shortage of skilled labour and the effect of higher interest rates would hold back the economy.
The election result disappointed more businesses than it has pleased.
Thirty seven per cent said the election results would have a negative effect on their businesses, 21 per cent expected it to have a positive effect and 27 per cent thought it would have no effect.
The survey confirms the perception that the Greens are not popular with business, with 45 per cent of respondents saying the party's policies would have a negative effect on the their business.
But 15 per cent considered there would be a positive effect and 26 per cent no effect.
