The National Bank’s April survey of business confidence has found employers are becoming reluctant to take on more staff.

The jobs outlook in most sectors has turned negative.

The last time the outlook was negative simultaneously for the Retail, Manufacturing, Agricultural and Construction sectors was in April 2003.

The only encouraging sector was Services, where employers continue to say job prospects are positive.

Encouragingly, companies’ view of their own activity in the next six months is positive for most sectors. Unfortunately they are the least positive for almost two years. The Construction sector is gloomiest, predicting a downturn in activity.

The National Bank sees several reasons for employers’ unhappiness:

The New Zealand dollar is stubbornly above US$ 0.70. Exchange rate cover is progressively wearing off.

Interest rates have increased.

The Government has hit motorists with another tax in the form of higher petrol prices.

Although recently one of the world’s top performers, the New Zealand share-market is dropping.

Businesses are being hit with a barrage of wage demands in response to skill shortages. Many employees believe the benefits of the economic expansion have not been passed on fairly to them.