Recent reports by most of economists have predicted that New Zealand’s unemployment would increase pat 5% this week; and thus the struggling businesses would be affected by the loosening labor market.  

Presently, the rate of unemployment taken from the December quarter is 4.7% and it has been forecasted by economists that number would be as high as 5.3% when the March quarter results come out on Thursday.

It was put forward by Employer and Manufacturers Association (Northern) employment services manager David Lowe that a bigger problem for business and skill shortage is being created by the attention paid towards unemployment.  

Mr. Lowe said, “Underneath the current recession, the question you have to ask is: has the skill shortage been remedied? The answer is, no it hasn’t.”

Some of the employers who are in very bad condition have lost their skilled staff as these employees are generally picked up quickly by businesses that can pay them.

However, those businesses that can afford to, are continuing with their best staff.

Mr. Lowe added, “The skilled staff that they had trouble finding last year, these businesses are now doing everything possible to hold onto."

(Via TopNews New Zealand. Contributed by Girish Kumar Guha)