2600 jobs on the line

The ‘‘greatest economic shock in living memory’’ will see more than 2600 jobs lost in Marlborough, a new report reveals.

Unemployment rates are expected to hit 8.2 cent by March next year, with Ma¯ ori and people aged under 30 likely to be worst affected. The unemployment rate was 2.8 per cent this March.

The figures were unveiled by The Economic Action Marlborough (TEAM) group on Friday as part of the first of its four-stage plan to restore the region’s economy following the coronavirus outbreak.

Nga¯ ti Toa Rangatira Ki Wairau member and former chairman Walter Waaka said it was time for Marlburians, both Ma¯ ori and Pa¯keha¯, to ‘‘look after ourselves’’ and put their neighbours first.

Unemployment among Ma¯ ori was predicted to rise to about 13 per cent, although Waaka said he had not yet seen the effects.

‘‘I know a lot of people that have been struggling, personally. But I also knew they were struggling before the virus. This may just be emphasising a lot of things,’’ he said. ‘‘A lot of young people are at a disadvantage because nowadays there’s so many people working until they’re older, working until they’re in their 70s.’’

He suggested businesses employ people locally rather than from overseas or other regions, and that the region look to planting produce among vineyards, which could then be sold elsewhere.

But the report said despite the wine industry being one of the ‘‘best positioned’’ in the region to bounce back from coronavirus, it would only make things ‘‘marginally less severe’’ for Marlborough.

A decline in the food manufacturing and transport sectors would likely cause a decline in a demand for the region’s wine, it said. ‘‘Premium wine is likely to be [the] hardest hit, due to drastic declines in on-premises consumption in the hospitality sector.’’

The region’s earnings would shrink by $137 million by next March, with more than half of the region’s job losses set to come from the food, accommodation, agriculture and forestry sectors.

Just under a third of businesses surveyed in May expected to reduce their staff numbers in the next three months, despite half having already cut staff. Most had seen a decrease in revenue.

New Zealand was set to see 250,500 jobs lost by next March.

TEAM chair and deputy mayor Nadine Taylor said the council would be unable to save every business or job in Marlborough.