Jobseeker numbers rise 10,700

WELLINGTON: First evidence of the impact of the Covid19 national lockdown emerged on Thursday, with the news some 10,700 Jobseeker benefits were approved between March 30 and April 3, the first full week of the shutdown.

Minister of Social Development Carmel Sepuloni told Parliament’s pandemic response select committee that figure was likely to be the tip of the iceberg, but she pushed back on some economic forecasters’ fears that unemployment could go as high as 30% of the workforce.

She told the committee that Treasury forecasts being prepared for release next week contemplated unemployment reaching ‘‘low double digits’’.

‘‘Everything will be determined by how successful we are as a country in coming out of this,’’ Ms Sepuloni said.

She was speaking shortly before Prime Minister Jacinda Ardern announced a further drop in daily new reported Covid19 infections. She declared that New Zealand was ‘‘turning a corner’’, raising hopes that four weeks of damaging economic hibernation would not need to be extended.

Ms Ardern made clear that businesses should start planning for life at Alert Level 3, one level lower than the current highest level, and that the Government would make a decision on whether or not to start lifting the lockdown on April 20, two days before it is due to end.

The Ministry of Social Development chief executive, Debbie Power, would not give the committee any numbers on anticipated future benefit increases.

She said the ministry was planning to hire between 200 and 300 more call centre staff to cope with anticipated demand.

Monthly figures updating benefit levels were released just as the committee began its deliberations and showed Jobseeker benefits — colloquially known as the dole — had risen by almost 5000 since the end of February.

There were 305,129 on the Jobseeker benefit on February 29 and 309,995 on March 27, two days after the lockdown began. The March total is about 15% higher than it was in March 2019, leading National MPs to suggest a ‘‘deeply concerning’’ potential for an explosion in benefit numbers, given the relative strength of the economy last year.

‘‘It there was a 15% increase when unemployment was at its lowest, we’ve got to be extremely concerned at what those numbers will be in what’s coming up to be worst of times,’’ National MP Paula Bennett said. — BusinessDesk