Home truths 1.2 m workers unproductive
Almost half of New Zealand’s workforce of 2.5 million people are sitting idle at home as they are unable to work during the coronavirus lockdown, economic consultancy Infometrics estimates.
Infometrics senior economist Brad Olsen estimates that 53 per cent of the workforce has been able to continue working, either at home or at the workplaces of businesses that were deemed essential and have remained open.
But 47 per cent, or 1.2 million workers, will essentially be unproductive during the four weeks that the lockdown is initially slated to last, Olsen believes.
The estimate was ‘‘a best guess’’ based on data from a Stats NZ survey of business operations and Infometrics’ own knowledge and sources, he said.
‘‘The lockdown has put the New Zealand economy onto life support,’’ he said.
‘‘New Zealand is facing extraordinary conditions, and some businesses and jobs will be lost.
‘‘With staff remaining on the payroll and work sitting waiting to be done, many businesses will be forced into a difficult situation.’’
Westpac forecast last week that the response to the coronavirus pandemic was likely to cost the country 200,000 jobs.
Of the total of more than 1.3 million workers who were still working, about 727,000 were doing so from home, with another 620,000 ‘‘essential’’ workers doing so at their workplace, Olsen said.
It was fortunate that between 2006 and 2018 the proportion of New
Zealand businesses that had the capability for staff to work from home rose from 20 per cent to 29 per cent, he said.
Consumer comparison service NZ Compare said last week that a poll it conducted suggested 35 per cent of people felt less productive when they worked from home, with only 17 per cent saying it made them more productive. In general, younger people were more likely to indicate that it negatively affected their work, the poll suggested.
Olsen said the proportion of employees who could work from home was 37 per cent in Wellington, but lower than 20 per cent in some rural areas.
That was mainly because of the makeup of industries in urban and rural areas.
But because food production had been classed as essential, the proportion of employees in some regions who were still working was close to 69 per cent, he said.
‘‘The importance of New Zealand’s regions to ensure food and drink are available across the country is clear to see, and is reinforced by Infometrics’ recent analysis of food and drink workers, which shows New Zealand continues to produce and import food – so there’s no need to panic buy,’’ Olsen said.