The construction and primary sectors were the most confident of hiring over the next year.
The construction and primary sectors were the most confident of hiring over the next year.
Only 13 per cent of New Zealand's small to medium businesses intend hiring more staff in the next six months although half are confident of growth in their operations, according to the Westpac Business Growth Monitor.
The monitor measures the confidence that more than 500 SMEs (with less than $5million turnover) have in the economy, their growth plans, hiring intentions, and funding needs.
Results for the December 2015 quarter showed only 13 per cent intend increasing staff in the next six months while 16 per cent plan to do so in the next year. The construction and primary sectors were the most confident of hiring over the next year and most intended doing so to service or retain customers.
The reluctance to take on staff may be related to concerns about how strong economic growth will be over the coming year, said Westpac's head of specialists business, Steve Atkinson.
"Over the next six months, 39 per cent believe it will be unstable or in decline against 43 per cent who think it will grow.
"One conclusion could be that most are looking to grow but their view on the economy is a red flag against hiring more staff."
Two thirds of Auckland SMEs had more confidence in the economy, compared with 38 percent for the rest of New Zealand.
Nearly half of the SMEs surveyed expect to grow revenue in the next six months while 32 per cent don't, and those with the highest confidence are in the manufacturing and business services sectors.
Just under two thirds of businesses intending to grow have a business plan to achieve their goals, with trade, transport and tourism, primary industries and manufacturing being the most prepared.
Of those expecting revenue growth, 19 per cent plan to borrow, mainly to buy assets or new equipment.
