'Trump effect' hits Auckland employers' business sentiments
Employers across Auckland are divided on whether to hire new staff in the next 12 months as more report negative business sentiment, according to a new report.
The latest Auckland Business Chamber confidence survey showed that 40% of employers in the city are not planning to hire new staff within the next 12 months.
However, some 38% of employers also said they are planning to hire new employees in the same period.
Only 11% of employers said they plan to decrease their headcount, while nine per cent said they're still not sure whether to employ more staff this year.
The findings come as one in five employers cite labour market constraints (13%) and employment issues (7%) as some of their top business concerns in the next six months.
The split hiring sentiments also come in the wake of declining business confidence among Auckland employers, according to the report.
Employers who reported negative business sentiment went up to 44% in the latest chamber report, up from the previous 44%. More employers are also expecting revenue to remain flat or decline over the next 12 months, up from 46%.
Only 38% of employers also expect New Zealand's economic performance to improve over the next 12 months, down from 44%.
Simon Bridges, CEO of the Auckland Business Chamber, said some of the negative business sentiment can be attributed to the US President Donald Trump's 10% tariffs.
In fact, the report found that employers who are concerned about international trade and geopolitical risks went up to 42% from the previous 27%.
"Some of that is the 'Trump effect,' with geopolitics continuing to rise as a top concern. But with less than a week until Budget 2025, domestic settings also assume huge significance," Bridges said in a statement.
The New Zealand government has set out an ambitious "Going for Growth" plan that is focused on "unleashing growth and building capacity, capability, and innovation."
But Bridges said Auckland employers will need some "serious evidence" of this agenda from the government.
"Whether this is tax or regulatory relief, or some other policy silver linings, will be Finance Minister Willis' prerogative. But one thing is for sure: light at the end of the tunnel is essential," he added.
