Weekly Digest – 1 November 2023

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Jobs growth within small businesses despite ‘tightening of the belts’ – Xero

Small businesses are facing declining sales in a challenging trading environment. Despite weak sales, jobs growth remained strong – rising 7 percent year-on-year – while wages increased 3.5 percent. Xero country manager Bridget Snelling said the pace of jobs growth may not be sustainable given the downward trend in sales.

Demand for consumer credit continues to increase – Equifax

Demand for consumer credit continues to increase despite a high interest rate environment and weak economic conditions. Credit rating agency Equifax indicates credit demand rose 1.5 percent in the three months ended September over the year earlier, with unsecured credit demand the main driver of growth – up 9.4 percent on the year earlier.

The end of cash? What a cashless economy would look like

Advances in digital technology mean cash is fast losing its relevance and appeal, as more people choose to use their cards, smartphones or other online platforms to make payments. What would be the benefits and challenges of shifting to a cashless society?

NZ sharemarket on verge of bear market

The NZX50 has fallen 19.5 percent since January 2021, meaning it is likely to be grizzly this week. Equity markets globally continue to tumble in the wake of rising tensions in the Middle East that has seen the NZX50 index, as of last Friday, now start with a 10, rather than 12 as it had just three months ago.

Paying your employees for leave

With summer holidays ahead of us, now is a good time to make sure you’re on track to pay your employees for any leave they will be taking.

KiwiSaver rule change: ‘Make it happen’

Federated Farmers’ sharemilker vice chair for the Waikato says it’s high time young farmers had the same opportunity as their urban counterparts. Letting young farmers use KiwiSaver to buy their first home, farm, herd or flock would help them fast-track their way through the sector, says a Waikato sharemilker.

Research on the economic impact of cloud businesses shows NZ lagging behind global adoption rate

Pip Gilbert, head of strategy and operations at Amazon Web Services, said the gains for increased productivity both for society and economically was significant. But barriers such as cybersecurity, managing legacy applications and lack of skills were slowing progress of adoption among SMEs. Gilbert said New Zealand was behind the basic cloud adoption rate of Australia, and of the 12 countries examined in the report, it was ranked “about middle of the pack”.

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