Figures released yesterday claim the Government’s infrastructure programme is a significant contributor to jobs across New Zealand – a potential boost for vehicle sales.
The government’s figures are welcome news, as figures from bank Westpac note a slowing in hiring intentions.
“Quality infrastructure networks such as transport, telecommunications, energy and water help to give businesses confidence to invest another dollar and employ another person,” Finance Minister Bill English says. “But infrastructure investment also creates jobs directly.
“The National Infrastructure Unit estimates, for example, that Roads of National Significance projects will involve around 35,000 construction jobs in regions like Northland, Auckland, Waikato, the Bay Of Plenty, Wellington and Canterbury,’ he explains. “The Government’s current investment in Regional State Highway improvements is expected to result in a further 2100 jobs.”
“The Ultra-Fast Broadband and Rural Broadband Initiatives are expected to result in over 4000 jobs between them, with a further 3000 from major rail upgrade projects since 2009.”
Meanwhile Westpac says a survey of Small to Medium Enterprises found only 13% intended to hire in the next six months.
The results come from the Westpac Business Growth Monitor which measures the confidence of 500 SMEs – businesses with less than $5 million turnover.
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, says Westpac head of specialists business, Steve Atkinson.
“Over the next six months, 39% believe it will be unstable or in decline against 43 percent who think it will grow,” Atkinson says. “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 to 38% for the rest of New Zealand.
