PAULA COX:

Many have claimed this year's payroll tax increase has hit the jobs market — but Finance Minister Ms Cox believes it's encouraged businesses to be more innovative.

"Businesses are saying they had a way of doing business that wasn't necessarily the most innovative. They have said they have had to rejig their model," she said.

"The market is slow, consumer confidence is low. They are having to do more with less."

Ms Cox says there's a chance the payroll tax rate could be lowered, if not completely reversed, as Bermuda starts to recover from the economic crisis.

Meanwhile she says the Chamber of Commerce's Buy Local campaign is one example of how businesses can think outside the box to make sure they don't have to lay people off during the struggle.

And she points out Government is also helping with tax breaks for restaurants and hotels, while pledging employment opportunities will emerge in areas such as construction as she tries to stimulate the economy.