In the face of recent turmoil in the financial markets and a forecast increase in unemployment, National must work with business to keep up the positive economic confidence from the end of last year, says Labour’s Economic Development spokesperson David Clark.
“The optimism coming out of the December quarter surveys is good to see. It’s vital that employers have the enthusiasm to hire in the new year after a difficult 2015 and to counter Treasury’s predictions that unemployment will rise to 6.5% in the first half of the year.
“However since those surveys the landscape has changed. China’s slowdown has led to major drops in international share markets and international investor confidence is falling. The Government needs to work with business to create jobs and opportunities in the face of likely falling confidence and the forecast spike in unemployment.
“It’s time for National to seize the opportunities that business confidence is creating. After a turbulent 2015 we’ve seen how quickly optimism can evaporate; 2014 ended on a similarly positive note, yet 2015 saw an increase in 15,000 more unemployed.
“The Government must ensure business maintains the confidence to keep investing,” says David Clark.