Employers still hesitant on new staff

Business conditions are improving but employers are still hesitant to take on new staff.

Australian Chamber of Commerce and Industry boss Kate Carnell believes there's still a long road ahead before the better conditions translate into better job opportunities.

ACCI's business survey for the September quarter found economic expectations for the next 12 months fell for the third consecutive quarter to an index of 48.9 points - below the critical 50-mark that separates pessimists from optimists.

"They are worried that the budget deficit is going to be hard to correct and that it will impact upon their capacity to grow to employ and invest in the future," Ms Carnell told reporters in Canberra on Monday.

The general business conditions index continued to edge towards the neutral level, rising for a seventh consecutive quarter to 48.6 points.

Ms Carnell backs the federal government's focus on reducing red tape burdens on business to kick start a badly needed economic recovery.

"The business community will definitely feel more confident to hire and invest if they are not weighed down by red tape," she said.