Businesses are expected to upskill existing staff rather than increase headcount. File photo. Photo: 123RF
Rising unemployment is another symptom of the economic stress businesses are under, say employers and manufacturers.
June quarter unemployment rose to 4.6 percent - from a revised 4.4 percent - in the first quarter of the year.
EMA head of advocacy Alan McDonald said the increased rate was not a surprise and reflected the record high volume of calls to its advice line service.
"The struggles facing Kiwi businesses, with the number of requests for help from our members in the areas of restructuring and redundancy skyrocketing this year," he said.
"Instead of increasing headcount, we expect businesses to upskill their existing staff in the likes of health and safety and leadership courses while they wait for the economy to improve."
He said there was little sign of an economic recovery with businesses expecting conditions to remain tough into next year.
"Despite inflation falling and a growing expectation of an economic recovery, with lower interest rates, these changes will take a long time to filter though the economy," McDonald said.
"The signs of an economic recovery are a decrease in unemployment, an increase in consumer spending, rising incomes, an increase in the GDP, and improved business activity. We have yet to see any of these indicators."
McDonald said global economic conditions may further delay the expected economic recovery, including the upcoming US election and the threat of tariffs.
He said it was also concerning that nearly 13 percent of young people between the ages of 15 and 24 were currently out of employment, education or training.
"This is an alarming statistic and suggests that job creation must be a priority for the government in the coming months, particularly among our young people."