Fewer people in Bay of Plenty needed
was “quite small”. He said there was low unemployment coming into this lockdown and he expected people to be picked up by new employers quickly.
Job ads were at a “historically high level”, despite a drop over the past two weeks which he expected would bounce back.
Tauranga Chamber of Commerce chief executive Matt Cowley cautioned that businesses that had not replenished their cash reserves, or had high debt, would have had to let staff go.
Despite the majority of businesses being able to partially operate in lockdown, many would have struggled with no cash flow.
“The staff wage subsidy only partially covers workers’ wages, especially as a third of it has to be paid back to Government in payroll tax.”
The industries that suffered the most were construction, retail, eateries and service businesses such as beauticians, barbers, massage therapists and tattoo artists.
He said the Bay’s economy would bounce back but not as strongly or quickly as last year, with the Government’s spending during this lockdown “far less” than in 2020.
Tauranga Budget Advisory
Services manager Shirley Mccombe said lockdowns could have a significant impact.
“My worry is that during the first lockdown people used savings, borrowed from family, maxed-out credit cards,” she said.
“Many are still trying to get back on top from the first lockdown.”
She said the impact of being on a benefit was different for everyone.
“It can be overwhelming and we encourage people to take control of the things they have control over.”
Rotorua Chamber of Commerce chief executive Bryce Heard said while some sectors in the city were doing well, others were suffering,