Businesses would bear the brunt of low unemployment, Otago Chamber of Commerce chief executive John Christie said yesterday.
He was commenting on the household labour force survey, which showed New Zealand's unemployment had fallen to a 25-year low of 3.4%.
‘‘There is statistical evidence today of what our members have been saying to us in our surveys . . . It is getting more difficult to find labour, both skilled and unskilled.''
With unemployment falling further, it would make it harder to get staff in a tight labour market and that would lead to increased costs, Mr Christie said.
The ability to hire skilled staff was recorded to be 3% more difficult in December than in the chamber's September quarterly survey.
Businesses indicated they wanted to hire staff in the first quarter of this year but acknowledged the difficulty they were facing.
More than 50% of the businesses surveyed in the December quarter cited staff costs as having the largest effect on profitability. Rising staff costs were also recorded by employers as their highest concern for the next six months.
‘‘There is no doubt that employers are increasing wages and salaries as the pressure goes on with a tightening labour market,'' Mr Christie said.
The opportunity for people to gain employment would remain strong, with employers still expecting to hire more staff in coming months.
While that was good for those seeking employment, or a change in employment, businesses would continue to face the pressure on wages and salaries and other related staff costs, he said.
